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Oh God. Who let Dr. Doom write an article? Oh, the Guardian.
Right, well, here we go. Put on your diapers, chug some laxatives, and let the shitstorm commence.
Having correctly acknowledged that crypto prices have dropped, Nouriel Roubini turns his ire to the underlying technology itself, which he brands “the last refuge of the crypto scoundrel.” It’s a shallow attack. Those who defend the underlying technology agree with him that crypto makes for a poor store of value.
The way he puts it, the industrial-scale rush to make use of the underlying blockchain technology—whose frontrunners include the World Bank, IBM, and the New York Stock Exchange—is just a last-ditch effort at self-redemption by a bunch of disgruntled crypto bros who lost $40 in the February bitcoin crash. But really, it’s the difference between screaming Bitconnect egg Carlos Matos and Vitalik Buterin. There are real engineers working on this thing, bro. You should check them out.
You know how that crypto wealth gets hacked, Roubini? Through exchanges, which unlike the virgin bitcoin network, are vulnerable because they are—you guessed it—centralized. Uch, if only there were a way to remove the hack-prone middlemen from the equation.
In earlier paragraphs, Roubini contemplates the unappetizing prospect of a global finance system “subject to anarchist or libertarian decentralization.” Middlemen are good, he reasons. But here he’s dribbling on networks’ over-centralization. Make up your mind, Roubini.
He comes back to this point, more forcefully, later:
Roubini’s shifting the goalposts here. In his mind, the term “blockchain” can only refer to the decentralized, permissionless ledgers that he so despises. Those that he takes no issues with, i.e. those deployed widely in FinTech, he cruelly dismisses as “distributed ledger technology,” forgetting that very term is a euphemism for, er, blockchain.
The point is that Wall Street-grade blockchain technologies, as far removed from bitcoin as they seem, have their roots in the exact same cryptographic, Satoshi-approved principles. If anything, they’re “distributed ledger technology in name only.” Because they’re blockchains. Checkmate.
Finally, some frothing vitriol for you to enjoy.
More often than not, Roubini, cryptocurrencies empower those living in such “kleptocracies.”
Meanwhile, from Twitter:
Because if there’s one thing the KKK loves more than Donald Trump, it’s financial freedom for the unbanked.
Dr. Doom, you’ve outdone yourself.