Famous economist Nouriel Roubini criticized the foundation of cryptocurrencies – the so-called blockchain technology.In his article for Project Syndicate, Mr. Roubini called blockchain the most overhyped technology ever.
In particular, he thinks that blockchain is less efficient than existing databases. All of its derivatives have major drawbacks – low transaction speed, the necessity of cryptographical transaction checks, and so on. He says that the only proper use case for blockchain is when it’s allowed to trade the speed for the quality of the check.
At the same time, the famous economist criticizes blockchain advocates for claiming that blockchain is a new universal protocol. In reality, blockchain utilizes existing Internet protocols like TCP-IP or HTML.
Also, he claims that the statement about trustless blockchain-based transactions is actually fake as well. There is no way to get rid of such threats commercially since those transactions need to be 100% backed by money in this case, but that’s insane from the standpoint of capital costs. On top of that, practice shows that applying blockchain even in justified cases like securitization or monitoring production chains actually cannot do without third parties anyways since there will definitely be emergency situations and they will require a flexible approach.
Roubini insists that we should be done with this fake fashion. He thinks that Bitcoin is slow and energy-inefficient dinosaur, which will never be able to process transactions as fast as even Excel. Almost all cryptocurrencies have major vulnerabilities.
