“Dr. Doom” once again spoke out in highly critical tones regarding the crypto space, suggesting most trading and promises are scams.

Dr. Nouriel Roubini is on a roll with scathing criticism of the crypto space. On Monday, Dr. Roubini continued with a scathing series of tweets, following a previous engagement with Ethereum’s co-founder Vitalik Buterin. The critical attitude follows a lengthy testimony to the US Banking and Finance Committee in Congress.

The focus of Roubini’s tweets are on the misleading nature of crypto markets, and the fact that they also harbor scams:

But the criticism did not end with the tweets – Roubini went on to discuss what he considers the flaws of blockchain technology on his other usual platform, Project Syndicate. In his latest criticism, he moves beyond the obvious fall in market prices and attacks the fact that a distributed ledger technology and a blockchain is relatively useless.

Roubini also claims that the crypto world, in fact, resembles a dictatorship much more than any decentralized democratic system:

“…One need only consider the massive centralization of power among cryptocurrency “miners,” exchanges, developers, and wealth holders to see that blockchain is not about decentralization and democracy; it is about greed.”

Roubini was also critical of the potential for projects to be overly-controlled by their developer teams. Ethereum is, in fact, not a free project and the “code is law” rule was in fact broken during the hard fork following the DAO hack.

Roubini added that a decentralized and permissionless system also does not make business sense:

“As for blockchain itself, there is no institution under the sun – bank, corporation, non-governmental organization, or government agency – that would put its balance sheet or register of transactions, trades, and interactions with clients and suppliers on public decentralized peer-to-peer permissionless ledgers. There is no good reason why such proprietary and highly valuable information should be recorded publicly.”

As usual, the criticisms of Roubini don’t take into account the fact that various crypto projects offer very different features to their networks. And while some may have flaws and are rather centralized, new solutions are constantly offered. Additionally, crypto optimists believe using distributed ledger technologies is a worthy test of the limits of applied cryptography.

The criticisms of Roubini come at a moment when the crypto world is seeing a serious shakedown of trust, as the Bitfinex exchange sees instability in the Tether (USDT) dollar-pegged coin. The negative events threaten the positions of Bitcoin, as investors may lose extensively if the USDT coin continues to crash.

Author: Christine Masters
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