Everything That’s Wrong With Roubini’s Central Bank Crypto Love Letter

Everything That’s Wrong With Roubini’s Central Bank Crypto Love Letter

Op-Ed

Whenever Nouriel Roubini talks smack about Bitcoin, it’s hard to know how to respond. Do you ignore “Dr. Doom,” mindful of the mantra to not feed the trolls? Or do you tackle him head on, shooting down his fallacies, but granting the attention he so desperately craves? It’s a conundrum, but in the case of the doc’s provocative new piece, a paean to central bank coins, the only option is to shoot for the heart. Here’s everything that’s wrong with Roubini’s latest brain dump.

Also read: A Brief Introduction to Voluntaryism for Crypto Neophytes

Oops He Did It Again

Everything That's Wrong With Roubini's Central Bank Crypto Love LetterNouriel Roubini

Those of us who were raised in the internet trenches, on the sort of forums where trolls like to troll trolls, know that giving attention-whores the oxygen they crave is generally a bad idea. Sometimes, though, your bête noire comes out with something so asinine the only option is to take the bait. From the title alone — “Why Central Bank Digital Currencies Will Destroy Cryptocurrencies” — you can tell that the author of the hit piece is faded economist Nouriel Roubini. You can also tell that at the end of each sentence, the excitable Dr. Doom had to pause to wipe the spittle from his screen.

The career of the Stern School of Business lecturer has been on a downward trajectory ever since BTC was changing hands for 40 bucks. Having been wrong about cryptocurrency for six years straight, Roubini isn’t going to change his tune now. Stubbornness is one of his many attributes. It’s a shame, because if it were only possible to see past his Trumpian bluster, Roubini occasionally has some good points to make.

Our subject begins his tirade by acknowledging that we’re transitioning to a cashless society and explaining that central bank digital currencies (CBDCs) are on the horizon. Up until now, Roubini is on solid ground. Unfortunately, he then ruins it by going full Dr. Doom:

Starry-eyed crypto-fanatics have seized on policymakers’ consideration of CBDCs as proof that even central banks need blockchain or crypto to enter the digital-currency game. This is nonsense. If anything, CBDCs would likely replace all private digital payment systems, regardless of whether they are connected to traditional bank accounts or cryptocurrencies.

Somebody Call a Doctor

As is often the case with Roubini’s unhinged rants, there are grains of truth scattered in there, such as the observation that central banks won’t use conventional blockchains to issue their digital currencies. That much can be safely assumed. But then our protagonist’s argument starts to rapidly unfold with the assertion that “If a CBDC were to be issued, it would immediately displace cryptocurrencies, which are not scalable, cheap, secure, or actually decentralized.”

It’s hard to know where to start with this sentence, which is filled with more logical fallacies and doublethink than the notion that “XRP was gifted to Ripple.” Apparently:

  • CBDCs will “immediately displace” cryptos – citation needed
  • Cryptos are “not cheap” – explanation needed
  • “Not secure” – citation needed
  • “Not actually decentralized” – and CBDCs are?

“Yes. Everyone will love using backdoored central bank digital currencies and no one would ever want to use anything else ever,” read one sarcastic response to Dr. Doom’s word salad.

If you can stomach more sensible chuckles, let’s read on to where Roubini claims “Enthusiasts will argue that cryptocurrencies would remain attractive to those who wish to remain anonymous. But, like private bank deposits today, CBDC transactions could also be made anonymous, with access to account-holder information available, when necessary, only to law-enforcement authorities or regulators, as already happens with private banks.”

Everything That's Wrong With Roubini's Central Bank Crypto Love Letter

Moving on from sensible chuckles to sides leaving orbit, Roubini continues: “By transferring payments from private to central banks, a CBDC-based system would be a boon for financial inclusion. Millions of unbanked people would have access to a near-free, efficient payment system through their cell phones.” Cos, you know, the only thing preventing impoverished Somalis from accessing banking services is the lack of a central bank cryptocurrency. The global financial system totally wants to include the downtrodden; it was just waiting to invent a centralized cryptocurrency before inviting them to the party.

Bitcoin could drop to $50 and it would still be a better investment than any CBDC. Whatever happens to central bank digital currencies, they will never displace decentralized cryptocurrencies, just as Roubini will never displace the gnawing pain that tells him he should have bought bitcoin in 2013.

Everything That's Wrong With Roubini's Central Bank Crypto Love LetterDays without Nouriel Roubini being wrong.

What are your thoughts on Nouriel Roubini’s latest rant? Let us know in the comments section below.


Images courtesy of Shutterstock.


OP-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com does not endorse nor support views, opinions or conclusions drawn in this post. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.

Cryptocurrency Memes: The Only Assets That Can Survive a Bear Market

Cryptocurrency Memes: The Only Assets That Can Survive a Bear Market

Featured

If there are two things a bear market’s good for, it’s building and memeing. Your portfolio might be down, but if you’re anything like crypto Twitter, your meme bank will be filled to overflowing with riches. Bloody markets make for marvelous memes.

Also read: Another ‘Satoshi Message’ Attempts to Sway Public Opinion, But Fails

Bears Everywhere

Cryptocurrency Memes: The Only Assets That Can Survive a Bear MarketTwelve months ago, media outlets such as news.Bitcoin.com were running low on stock images of bulls to accompany stories of BTC hitting new all-time highs. One year on and it’s bears we’re running low on. Thankfully, internet image boards and Telegram channels are a ripe repository of the sort of bears last seen in childhood cartoons, now repurposed to suit the market we find ourselves in.

Do our memes reflect the mood of the markets or do the markets reflect the mood of our memes? Perhaps if we all shared more bulls in our cryptocurrency trading groups the good times would return.

Hide the Pain

While market downturns can be good for germinating new memes, they’re also good for resurrecting old ones. Hide the Pain Harold sticker sets have been seeing heavy usage on Telegram ever since BTC dropped below $6,000.

Cryptocurrency Memes: The Only Assets That Can Survive a Bear Market

NPC

2018’s defining meme has undoubtedly been the non-player character (NPC). It’s been used mercilessly throughout the cryptocurrency space to mock opponents, with the Blockstream/Bitcoin Core Telegram pack one of the finest sticker collections currently doing the rounds.

Cryptocurrency Memes: The Only Assets That Can Survive a Bear Market

Sergey and the Singularity

Some crypto memes are too arcane to explain. Quite why posters on 4chan’s /biz/ messageboard have fixated on the CEO of oracle project Chainlink doesn’t matter. Nor does it matter why they’re hoarding LINK in anticipation of an event dubbed The Singularity that’s supposedly going to make them stupidly rich. All that matters is poor Sergey Nazarov has been memed mercilessly, albeit for all the right reasons – namely humor and awareness by his devoted band of Link Marines.

Cryptocurrency Memes: The Only Assets That Can Survive a Bear Market

ICO Bingo

You’ve probably already seen the bagholder bingo card:

Cryptocurrency Memes: The Only Assets That Can Survive a Bear Market

In a week where the SEC laid the banhammer on a brace of ICOs, it seems the perfect time to share bagholder bingo’s sister card – ICO bingo:

Cryptocurrency Memes: The Only Assets That Can Survive a Bear Market

Finally, no matter how rekt your portfolio might be, remember – it can always get rekter.

Cryptocurrency Memes: The Only Assets That Can Survive a Bear Market

What are your favorite crypto memes of the moment? Let us know in the comments section below.


Images courtesy of Shutterstock.


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The Daily: US Bank to Issue Crypto Cards, Coinbase Updates Wallet

The Daily: US Bank to Issue Crypto Cards, Coinbase Updates Wallet

The Daily

In Sunday’s edition of The Daily, we cover the upcoming launch of a new Visa debit card that will allow users in the U.S. to spend cryptocurrencies through conversion to fiat. We also mention the updated Coinbase wallet and take a look at an educational course that’s going to reward students with digital coins.    

Also read: New Woe for ICOs, Bitcoin Cash Trading Resumes

Crypto.com to Launch Prepaid Visa Cards in the US

New York-based Metropolitan Commercial Bank and Foris Inc., a Jacksonville, Florida-headquartered affiliate of digital asset wallet provider Crypto.com, are preparing to issue Visa crypto debit cards in the United States. The announcement comes after Crypto.com, a Hong Kong-based company formerly known as Monaco, recently launched its Mco Visa card program in Singapore.

The Daily: US Bank to Issue Crypto Cards, Coinbase Updates Wallet

The prepaid cards, which have no annual, monthly and ATM withdrawal fees, can be ordered from the wallet and card app of the cryptocurrency payment platform. The application allows users to purchase, sell, store, send and track cryptocurrencies. Customers can also use it to spend their digital coins in stores accepting Visa through conversion to fiat money without being charged exchange fees.

Reservations for the Mco Visa cards can be made after users pass an onboarding process which includes ID verification. According to a press release, over 100,000 cards have already been reserved globally. With the wallet app, cardholders will be able to manage the card usage and their crypto and fiat transactions. They can also freeze and unfreeze their cards with a single tap at any moment.

Coinbase Wallet Updated

The Daily: US Bank to Issue Crypto Cards, Coinbase Updates WalletCryptocurrency exchange Coinbase has updated its Ethereum-based wallet to improve its looks and add new functionalities. According to an announcement on Twitter, all supported ERC20 tokens will now show up automatically, along with available values in local fiat currency. That means users will no longer need to manually add the tokens to their portfolios.

The California-based digital asset trading platform has also introduced a new crypto collectibles gallery integrated with Opensea and Rarebits to support hundreds of collectibles. Other changes include improved stability, security, and better gas price estimation. The wallet app has already been updated for iPhone users. The new version for Android phones is expected within the next few days.

Course Rewards Students With Coins

The Daily: US Bank to Issue Crypto Cards, Coinbase Updates WalletAeternity, a company that manages smart contracts, has recently teamed up with peer-to-peer online learning platform Dacade to launch an introductory course for cryptocurrencies and blockchain. The free program is designed to educate users, developers and entrepreneurs on the basics of crypto-related technologies.

Furthermore, students who develop practical use cases will be rewarded with aeternity tokens. According to Coinmarketcap, the Aeternity coin (AE) currently sells for around $0.88. The first edition of the course is a non-technical introduction for beginners but the partners plan to soon form advanced learning communities for developers.

Tron Launches Dapp Development Program

The Daily: US Bank to Issue Crypto Cards, Coinbase Updates WalletCryptocurrency project Tron (TRX) has unveiled a $1 million program to support developers of decentralized applications (dapps). The accelerator will distribute rewards among 56 teams developing dapps and products based on the Tron protocol.

According to an announcement, the initiative is aimed at supporting the spread of blockchain technologies among users. It comes after Tron recently bought the file-sharing service Bittorrent, the payment service Poppy and launched its Atlas project.

The winners of the three “grand prizes” will divide a pool of $550,000. Another eight “special prizes” of $30,000 will be awarded to leading projects in several categories, and 42 teams will receive “finalist prizes” worth $5,000 each.

What are your thoughts on today’s news tidbits? Tell us in the comments section.


Images courtesy of Shutterstock, Crypto.com.


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