Nouriel Roubini, a notable American economist shared his opinion on how he doesn’t believe cryptocurrencies would make a good payment system, referring to them as “chaotic”; and also bashed ICOs while debating Joseph Lubin, Ethereum’s co-founder, in the Fluidity Summit in New York, according to CNBC.
Roubini is an important economist, a professor at the New York School of Bussiness and also Chairman of Roubini Associates, an economic consulting firm. He has been an investigator and advisor at the International Monetary Fund, the World Bank and served also at the Treasury of the State.
On a heated debate, he declared that cryptocurrencies were just no good for payments and that paying with them would induce “chaos” to the parts involved in a purchase. He was very vocal about this stating that:
“YOU ARE GOING TO THE WORLD OF THE FLINTSTONES TO BUY ANY GOOD YOU HAVE TO EXCHANGE, YOU GO BACK TO THE STONE AGE OF BARTERING.”
He was referring to the waiting times that buyers and sellers have to endure for a transaction with cryptocurrencies to be confirmed. Depending on the blockchain and the state of the network, people must wait minutes or even hours for a certain transaction to be confirmed. The waiting times can be accelerated by paying a higher commission fee to the miners, but that will add up to the cost of your purchase. The higher the fee paid, the faster that the transaction will be confirmed.
He also referred to the ICOs as “mostly scams”. Initial Coin Offerings are fundraising ventures that let anyone propose a defined business model to anyone that wants to invest in it. You mostly change your money for a utility token that can be used on the related platform for anything. He stated that most ICOs were:
“CREATED BY CON ARTISTS, CHARLATANS, AND SWINDLERS LOOKING TO TAKE YOUR MONEY AND RUN.”
Finally, he exposed that he thinks that in the future purchases will be made by digital payment systems like PayPal and Alibaba, but that cryptocurrencies are a thing of the moment and will not be significant or important in the coming times; an opinion that is also shared by PayPal’s former CEO, Bill Harris, who stated the same thing to CNBC two weeks ago.