Ethereum founder Vitalik Buterin took a jab at the famed economist and crypto critic Nouriel Roubini, often referred to as Dr. Doom for his predictions about the recent financial crisis. Roubini had previously claimed that decentralization in cryptocurrencies is merely a 'myth' and described Buterin as a 'dictator.'
Senate Committee
The whole saga kicked off when Roubini gave testimony to the U.S. Senate Banking Committee on Wednesday, as detailed by reports. Bloomberg During this session, the professor unleashed a scathing attack on the crypto industry, labeling its operators as 'swindlers' and 'frauds' exploiting 'unsuspecting retail investors.'
'Swindlers, fraudsters, criminals, charlatans, and self-serving insiders,' called Roubini, highlighting how they exploited retail investors’ FOMO, only to burden them with worthless investments during a crypto bubble that erupted and collapsed in mere months like never seen in financial history.
Roubini elaborated on his oft-repeated concerns about cryptocurrencies, also highlighting the deflationary tendencies of Bitcoin. He argued that its supply-generation mechanism is 'arbitrary and even less efficient than fiat money.' He further criticized blockchain technology, claiming it falls short of being revolutionary as it lacks scalability, true decentralization, and security. His testimony was also laced with personal jabs at Buterin, accusing him of failing to deliver a truly scalable system and criticizing the buggy nature of the Ethereum blockchain.
Buterin Fights Back
In a post shared on Twitter Buterin responded to Roubini’s allegations, addressing the economist's qualifications head-on.
Buterin’s tweet had read:
“I officially predict a financial crisis sometime between now and 2021. Not because I have any special knowledge or even actually think that but so that I can have a 25% (or whatever) chance of later being publicly acclaimed as “a guru who predicted the last financial crisis.”
Roubini retaliated instantly, scrutinizing Ethereum’s infrastructure. He mocked it as ‘vaporware,’ technology promising faster transactions on the blockchain. at Sharding Roubini continued his critical rant on Twitter, disparaging cryptocurrencies as 'junk coins' and claiming the community consists of a ‘cesspool of nutty individuals.’
'Most of the crypto space is one useless coin swapped for another,' stated Roubini. 'And in the past year, the average coin has lost over 90% of its value. Thus, Crypto Land is nothing but a Loon Haven, populated by deranged folks obsessed with their futile coins.'
Roubini engaged in a heated Twitter debate with crypto supporters, before reiterating his view of crypto as fraudulent and illusory wealth. Roubini insisted that the supposed decentralization of crypto doesn’t exist, suggesting that even North Korea might be more decentralized. Some Twitter users admonished Roubini, arguing his statements might oversimplify the nuances, as different cryptocurrencies possess varying levels of decentralization.
Buterin also chimed in on the debate about the genuine decentralization of cryptocurrencies.
'Such a description seems off to me; delving deeper into Ethereum's governance processes reveals a tech elite presence (as is true in all cryptos), but my role isn’t as central as it appears from an outsider’s perspective.'
Even if the industry collapses, as foreseen by Roubini and other crypto pessimists, developers will likely continue refining the technology by investing in research and improvements.
In the UK, Jimmy has closely monitored blockchain's evolution for years, believing in its promise to democratize finance.
