The Mother of All Scams

the mother of all scams

Nouriel Roubini, aka “Dr. Doom”, today in front of a U.S. Senate Committee on Banking, Housing and Urban Affairs, called Bitcoin the mother of all scams“...

Roubini is famous for calling the 2008 financial crisis.

In his testimony he also laid into blockchain as “the most over-hyped – and least useful – technology in human history”. 

Roubini joins other critics of crypto including Jamie Dimon, Warren Buffett and James “The Gold Guru” Rickards.

Personally, I think it’s too early to tell if Bitcoin is a scam.

I do agree with some of his points about the concentration of wealth by “insider whales”, and blockchain being over-hyped…

There is a ton of blockchain hype… And yet, essentially the only thing that Bitcoin and other crypto-assets has been good for (or bad, depending on your point of view) is investment speculation.

No one uses Bitcoin for anything else, really.

Essentially no one uses distributed blockchain apps for anything.

And most ICOs, coins and tokens are total scams that will end up at zero.

Should We Trust Insider Whales?

If you are intrigued by crypto, listen to the Unchained podcast with Barry Silbert, CEO of Digital Currency Group.

Barry sounds incredibly sincere when he emphasizes that “…you can’t kill Bitcoin”.

Barry is an incredibly successful entrepreneur, and financial markets expert and investor… He recognizes opportunity before others do.

He founded Second Market1 and was an early investor in Bitcoin… He put his money where his mouth was early on and it obviously paid off…

Barry says he believes that most ICOs are the mother of all scams.

So, he is bullish on Bitcoin and other certain cryptos (Ethereum Classic, ZCash, Decentraland and Horizon)…

But why is he bullish? Really?

Is he bullish because he’s an insider whale? Or does he truly believe that cryptocurrencies are the future of investing, or at least that they will have a huge impact in the future…?

One of the interesting parts of the interview is his thoughts on what will happen with respect to Wall Street banks and crypto in the future…

Check out the podcast for the details… It’s excellent and insightful if you are curious about crypto.

Footnotes

  1. Now called Nasdaq Private Market.