As the entire crypto community unites against Nouriel Roubini’s claims that crypto and blockchain are a criminally enthralled ponzi schemes that have no use in today’s world, we decided to give people a breakdown of what this “expert of global economy, international financial markets, asset and credit bubbles and their bust and the related financial crises,” actually wrote in his 37 page crypto hating manifesto. (yes, that is how his 37 page report starts https://www.banking.senate.gov/imo/media/doc/Roubini%20Testimony%2010-11-18.pdf)

His report starts off by describing the events that conspired in late 2017 where retail investors rushed into buying Bitcoin and other “shitcoins” out FOMO. The retail surge of 2017 actually started in the early spring when we saw Ethereum jump from $10 in February to the highs of $370 in June. Many other “shitcoins” followed suit during this time frame and we saw massive valuation increase across the board while Bitcoin’s price increased from $1,000 to $2,500. He is not wrong about insiders dumping on retail FOMO investors in late December and early January, but a more accurate context of what actually happened in 2017 is necessary if you want to have any credibility.

He then goes on to say that “calling a vaporware garbage a shitcoin is a grave insult to manure that is a most useful, precious and productive good as a fertilizer in a agriculture,” with a footnote that apologizes to Senate members for the use of the word “shitcoin”. If he was actually knowledgeable about the space, he’d know that the reason we had a massive bull run in 2017 was because of a coin that was once upon a time deemed a shitcoin – Ethereum. If Ethereum didn’t explode to 100x gains over the year and didn’t become a vehicle to raise funds for most ICO’s, we probably wouldn’t be talking about $20k Bitcoin. Furthermore, if Mr. Roubini had done enough research to look at every coin on CoinMarketCap’s list he’d find many so called “shitcoins” actually offer significant value to users. Some that come to mind instantly are $BAT, $ZRX and even $XRP has its own use value.

Yes, there are many “shitcoins” that offer very little unique value but to generalize 1500+ projects and label them as such is lazy and doesn’t solidify someone’s status as a self proclaimed “expert.”

Mr. Roubini claims that according to a recent study – 81% of all ICO’s were scams in the first place. Dear professor/expert, as you have advised your students to use proper citations, we advise you do the same. Nowhere do you mention which study offered this statistic or provide a citation as to how you acquired this number and from where. No doubt there were scam ICOs that stole investors’ money but please provide a reference in all your future “expert papers” on all statistic based sourcing that at first glance seems highly inaccurate.

The report then goes on to claim that “almost no merchant” will use Bitcoin as means of payment since it’s too volatile. Mr. Roubini how much research did you do? Here is a list of popular merchants that already accept Bitcoin:

  • Microsoft
  • Expedia
  • Virgin Galactic
  • Newegg
  • Whole Foods
  • Bloomberg
  • Intuit
  • Rakuten
  • KFC Canada
  • Overstock.com
  • Subway

Let’s not forget about the thousands of SME’s that accept Bitcoin and other crypto currencies across the world. Combine that with merchants represented by payment platforms such as Square and Shopify, and you already have a widespread infrastructure adoption that Mr. Roubini claims “no one will ever use.”

He then claims that a $2 Bitcoin transaction will cost you $55 in fees. Once gain, if Mr. Roubini had conducted proper research and offered an unbiased view of his findings, he’d state that $55 transaction fee occurred only on two dates in history December 21 and December 22 of 2017. Since then, transaction fees have fallen to $0.50-$0.75 and have displayed this variance since March, 2018.



Despite somewhat accurate claims, the first couple page of Mr. Roubini’s 37 page report have shown lack of knowledge, research and absence of key facts. We will continue to review his “expert paper” and point out what we think he got right and wrong. Stay tuned.

To Be Continued…



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