Economist Nouriel Roubini, recognized for his accurate prediction of the 2008 financial crisis, once again expressed his skepticism towards Bitcoin, highlighting flaws in the security and promised decentralization of the cryptocurrency. In a recent debate organized by Zerohedge, Roubini compared Bitcoin to gold, mainly criticizing its shortcomings in delivering what it promises to its users.
According to Roubini, one of Bitcoin’s main problems is its security, pointing to the irreversibility of transactions as a significant risk. “If your private keys are stolen, there is no way to recover your losses,” he highlighted, noting that such a feature can lead to significant losses without any possible recourse.
Furthermore, Roubini attacked the idea that Bitcoin is a decentralized network. He described this notion as “absurd,” arguing that Bitcoin mining is concentrated in the hands of a few, which compromises the integrity and decentralized ideal of the network. This centralization, according to him, is especially problematic in regions with looser regulations.
The economist also raised doubts about the efficiency of Bitcoin as an alternative to traditional finance. For him, cryptocurrency fails to process large transactions as efficiently as established financial systems, comparing its storage to antiquated methods like burying gold.
Can not stop laughing at this!@zerohedge Bitcoin vs Gold debate uncovers a few secrets as Nouriel Roubini shoots @PeterSchiff in the foot 🤣🤣🤣🤣🤣#bitcoinvsgolddebate #gold #bitcoin #zerohedge pic.twitter.com/Udo6HXCuyY
— Proof of Work Au (@proofofworkau) May 5, 2024
Roubini’s view of the cryptocurrency sector is decidedly negative, describing it as corrupt and susceptible to criminal activity. He predicts a “crypto apocalypse” where intensifying regulations could have devastating impacts on the market. “We are heading towards a regulatory crackdown that will shake up the world of cryptocurrencies,” he said.
Roubini’s criticisms continue to polarize opinions, often pitting him against cryptocurrency advocates who see these technologies as innovative and transformative for the financial sector.
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Source: https://portalcripto.com.br/nouriel-roubini-bitcoin-economista-expoe-falhas-de-seguranca-e-descentralizacao-do-btc/
