Prominent economist Nouriel Roubini has once again criticized Bitcoin (BTC), questioning its decentralization, security and scalability.
Notably, Roubini maintains a negative stance towards Bitcoin and the broader crypto space, often branding them a scam.
At a May 3 debate hosted by financial news aggregators. zero hedgewhere Bitcoin was pitted against gold, Roubini dismantled the fundamental tenets of major cryptocurrencies.
He used his reputation for accurately predicting the 2008 financial crisis to argue that Bitcoin's promises of security and scalability were less fulfilled than those of traditional monetary systems.
Roubini emphasized the vulnerability of Bitcoin holders and the irreversible nature of transactions once the private key is compromised. He noted that unlike traditional banking systems, which provide rescue options in case of theft, loss of private keys results in permanent loss of funds, painting a bleak picture of Bitcoin's security situation.
I have doubts about the decentralization of Bitcoin.
Roubini also took issue with the concept of Bitcoin's decentralization, dismissing it as “nonsense.” He highlighted the concentration of mining power in a few key players, which in his view undermines the case for decentralization.
“The traditional financial system has great scalability. Yes, we have a centralized system. First of all, Bitcoin is not secure. <…> It's not even decentralized. <…> This idea of decentralization is nonsense. It is not decentralized, secure, or scalable. That’s three no’s,” he said.
Roubini expressed concern that the dominance of mining operations, especially in areas with tax regulatory oversight, threatens the integrity of the network.
Alternatives to traditional finance
Additionally, it rejected Bitcoin as a viable alternative to the traditional financial system due to its inefficiency in processing large transaction volumes.
The financial expert also likened storing Bitcoin to burying gold underground, a cumbersome and impractical solution in the digital age.
His sentiment comes as he continues to bash cryptocurrencies. Economists have called cryptocurrencies “totally corrupt” and “the greatest criminal heist in human history.”
The expert also warned of a potential “crypto apocalypse” for the industry, mainly due to regulators cracking down on the sector.
