The economist who predicted the 2008 financial crash has warned American politicians that Bitcoin is “the mother of all scams” during a Senate hearing on cryptocurrency.
Nouriel Roubini, a fierce critic of virtual currency, took aim at the blockchain technology underpinning cryptocurrency, which is often hailed as transformative even by those cynical about digital coins.
“Blockchain is the most over-hyped technology ever,” the New York University Professor told the Senate Banking Committee. “It is nothing better than a glorified spreadsheet or database.
“It is clear by now that Bitcoin and other cryptocurrencies represent the mother of all bubbles,” he added.
The attack contradicts proponents of blockchain including the Government’s science office, which argued in 2016 that the technology could “help governments to collect taxes, deliver benefits, issue passports, record land registries, assure the supply chain of goods and services and generally ensure the integrity of government records and services.”
Roubini added that the nickname “s—coins” which is often used by cryptocurrency traders when referring to less valuable coins, was “a grave insult to manure”.