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Dr. Doom Lays Into Bitcoin & BitMEX After Tangle in Taipei

Bitcoin V.S. The World

Yesterday, two behemoths in the Bitcoin (BTC) world butted heads: Nouriel “Dr. Doom” Roubini and Arthur Hayes. The former is a career markets cynic that famously called 2008’s Great Recession; The latter is the chief executive of BitMEX, famous for his no-filter attitude and his eerily accurate crypto market calls.

Held at Asia Blockchain Summit, one of the region’s largest cryptocurrency-related events, “The Tangle in Taipei” debate saw the duo try and trash the other, no holds barred.

While both sides claimed victory, Roubini, a New York University professor, claims that he won. In a tweet following the debate, which was actually barred from being livestreamed/recorded, the Bitcoin skeptic urged BitMEX to release the video. Roubini quipped that he “destroyed” Hayes, before calling the industry executive a coward for not publicly releasing the tapes.

The economist continued his tirade in latter tweets, in which Roubini poked fun at BitMEX for offering high leverage on its cryptocurrency markets, which he suggests is much like a drug of gambling. “Hayes spent half of the debate today defending his shady biz model of peddling 100x leverage crypto derivatives to retail suckers,” Roubini wrote, evidently not fine with the fact that debate ended hours ago.

While many in the cryptocurrency community have dismissed Roubini’s attempt to get Hayes to “release the tapes” as nothing but a bluff, attendees of the event have claimed that the spat was actually closer than the two sides say.

Mike Dudas, the chief executive of trade publication The Block, called the parley “dead-even”, noting that both sides made “strong arguments”. Dudas even went as far as to say that Roubini may have squeaked out a win, snagging an anecdotal “52 to 48” victory.

So, what exactly was said? And, which side many better points?

A Historic Spat

Well, according to notes published by Dudas, Roubini centered his sights on how BitMEX is unregulated, offers “risky” products, could be employing insider trading, could be registering fake Bitcoin volumes, and makes money off “suckers”. While there aren’t any direct quotes from the shouting match, the economist was trying to make it clear that the aforementioned exchange is not a net benefit for the cryptocurrency space, but is instead a way in which BitMEX can accumulate wealth for themselves.

Hayes rebutted by explaining that BitMEX’s growth has been entirely natural, his firm’s operations are honest, and that 100x leverage isn’t mandatory. The BitMEX chief went on to explain that abiding by the regulations of the U.S. isn’t mandatory, because the nation’s regulators aren’t the end all and be all of the cryptocurrency game.

The discussion then took a step back, giving the two a chance to talk more about Bitcoin and blockchain as a whole. As normal, Roubini took the stance that Bitcoin isn’t needed in today’s economy, is centralized, not scalable, has better alternatives, and is backed by questionable characters. Hayes also took his normal stance, claiming that in a world where government-surveyed fintech is becoming commonplace, a private money like Bitcoin is needed.

As someone that wasn’t able to attend the debate for logistical reasons, I can’t tell you who won, or if Roubini’s attempt to get the tapes released is logical. But, soon enough, we should have our answers.

Photo by Almos Bechtold on Unsplash

The post Dr. Doom Lays Into Bitcoin & BitMEX After Tangle in Taipei appeared first on Ethereum World News.

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‘Dr. Doom’ Roubini Doubles Down On Bitcoin (BTC) Bubble Quip

Bitcoin Still The Father (and Mother) of Market Bubbles

The recent crypto market has only imbued long-time Bitcoin cynic, economist Nouriel Roubini, with more strength. In a recent interview, the Stern School at New York University professor, also known as Dr. Doom due to his relentless cynicism towards certain markets, explained this subject matter.

He explained that from his standpoint, the “while crypto space is one of [those] asset [classes] that are not really money.” Backing his call, he went on to bash cryptocurrencies as a whole, noting that they are neither a currency/viable medium of exchange or a proper store of value. Although some would beg to differ, especially with the supply cap of Bitcoin and the impending Lightning Network, Roubini added that as BTC fell from $20,000 and $2,000, he’s still sure the cryptocurrency is the “mother and father of all bubbles.” Dr. Doom added that the fact that many asking for his advice on Bitcoin “did not even appreciate the difference between stocks and bonds or types of markets, or the basics of credit and interest rates” was an evident red flag that something was amok.

Thus, the New York-based economist concluded that investing in cryptocurrencies and Bitcoin is much like gambling or overtrading a fad.

Roubini Also Waving Legacy Market Red Flags

In the same interview, Roubini also touched on the fact that by some measures, the legacy market could be entering a precarious territory. The economist noted that while it is unlikely that a global recession is inbound, current macroeconomy conditions could be considered “mediocre,” as the world may enter into a phase of ” synchronized slowdown.” He added that nations in the European Union may start to “sputter towards something weaker than their level of potential economic growth,” presumably touching on the tumult that the eurozone has gone through with Brexit, the Yellow Vest movement, and other societal imbroglios.

He added that “excessive debt” is present in the corporate world. Interestingly, he noted that as long as the economy continues to grow at a steady rate, the build-up in debt could be justified. Yet, he made it clear that if there is a further slowdown, the levels of corporate debt could enter a “danger zone,” along with household debt across the U.S. and abroad.

Funnily enough, some argue that this, or a downturn in traditional markets due to high levels of debt to be more specific, could be good for cryptocurrencies, namely Bitcoin. Travis Kling, the chief investment officer of Ikigai, has explained on multiple occasions that BTC is a perfect hedge against irresponsible monetary practices, arguably exemplified in the swelling levels of debt the world over. Per previous reports from Ethereum World News, Kling, a former portfolio manager at Steven Cohen’s Point72 Asset Management, noted that the monumental rise of employed quantitative easing (QE) strategies is “how you would write the script” for the adoption of cryptocurrencies, especially ones that tout a decentralized nature.

Photo by Dawid Zawiła on Unsplash

The post ‘Dr. Doom’ Roubini Doubles Down On Bitcoin (BTC) Bubble Quip appeared first on Ethereum World News.

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Economist Roubini: 'Crypto Crazies' Are 'Cyber Terrorists'

Nouriel Roubini, the former Clinton administration economist nicknamed “Dr. Doom” due to his prediction of the 2008 financial collapse, resumed his criticism of cryptocurrencies on Twitter Tuesday.

Just prior to a Senate Committee hearing on cryptocurrencies, he wrote, “Cryptocrazies are also criminal Cyber-Terrorists,” and alleged that his consulting firm, Roubini Global Economics, was targeted in a 2015 denial-of-service attack because he had criticized bitcoin.

Roubini further claimed that he had received death threats as a result of his views. Roubini said in the tweet that he anticipated another attack, and had received new threats to this effect.

These alleged threats did not force the economist to back down from his stance on bitcoin, however. In another tweet, the New York University professor praised Agustin Carstens, the head of the Bank for International Settlements (BIS) for labeling bitcoin as a “Ponzi scheme” in a speech earlier today.

In other tweets, Roubini posted links to several articles claiming a connection between bitcoin and criminal activity. At the same time, he noted bitcoin’s recent price decline and the overall cryptocurrency market correction, saying that bitcoin is starting “to look like a dinosaur on the way to extinction,” and suggested that its value will remain volatile.

As previously reported by CoinDesk, Roubini has been a consistent and vocal critic of bitcoin and cryptocurrencies more generally.

Last month, he condemned the notion that cryptocurrencies could replace fiat currencies as “utterly idiotic.” In the past, he has also dismissed bitcoin as a bubble and a “Ponzi game.”

Image via Shutterstock

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