Nouriel Roubini is an economics professor at the New York University and has been more prominent with the tag of Dr. Doom, an alias he got from predicting the economic meltdown of 2008. The Dr. Doom is also termed at times to his never positive thought on cryptocurrencies.
Recently, as part of his speech at the United States Senate committee on technology Roubini noted that cryptocurrency is “the mother of all scams” and the underlying technology, blockchain is described by him as glorified spreadsheet or database.
Also, among others, Roubini stated that Tether’s USDT and other stablecoins are the biggest scams of all, while he claimed that the stablecoin was issued to pump the price of bitcoin to its all-time high.
The USDT token was introduced a year ago while the crypto bubble was on. This created a view among non-cryptocurrency enthusiasts that the digital currency was introduced to aid the cryptocurrency bubble a year ago. Roubini believes that the cryptocurrency bear has no recovery, as the bear will continue till cryptocurrency is no longer valuable.
The USDT Losses Value
The recent loss of value of the token and the disinterest that it has received of recent seems a fulfillment of the thought of Roubini on the cryptocurrency.
USDT has seen a sudden fall in value that has seen it trade at $0.96. Also, the cryptocurrency has experienced many sells off as traders are buying any cryptocurrency in exchange for Tether or USDT.
Notably, the fear of the recent fall in value and sell off has made exchanges such as KuCoin to suspend all forms of withdrawals and deposits of Tether while allowing USDT transactions again in four hours.
Why are Traders Worried
The recent loss in value of Tether has made many worried and also lose interest in the cryptocurrency. Also, a majority of traders have assimilated the notion that the actual dollar does not back the cryptocurrency as the company has failed to provide evidence of its holdings to the public.
The truism of the thought of Roubini on cryptocurrency is he has never been positive as he is an incurable pessimist of cryptocurrency. Though the value loss and the recent sale of the USDT could be adduced as a burst of the bubble of USDT, however, the value and relevance of cryptocurrency remain vital to the future of the world economy.