The cryptocurrency market has had its fair share of critics and proponents for a long time now. The latest critic to voice his concern about cryptocurrency and especially Bitcoin, is Nouriel ‘Dr.Doom’ Roubini.
The economist, infamous for predicting the 2008 recession, has been a ‘BTC hater’ from the very beginning, even going on to compare cryptocurrency proponents like Vitalik Buterin to the likes of North Korean leader Kim Jong-Un. Roubini recently shared an article written by a serving British MP, tweeting,
“The Bitcoin Scam: Despite the Utopian claims of its proponents, Bitcoin is a right-wing nightmare which facilitates tax evasion, money laundering and environmental degradation. By Alex Sobel, only UK MP with a computer science degree. So science-literate”
The article, written by Alex Sobel, Member of Parliament for Leeds North West, claimed that Bitcoin was a scam. Sobel added that Bitcoin promised a lot, but never delivered on them. In his words,
“Bitcoin launched in 2009 when the despair of the last global crash provided the perfect context for the growth of subversive financial technology that aimed to upturn the old order. But, while this might be the narrative, bitcoin, in reality, does no such thing. What began as a utopian project of monetary secessionism has, for the last few years, been shifting ever closer to the worlds of politics and finance — the realms its early adopters argued they were escaping.”
Apart from the immutability of the cryptocurrency, another problem that was pointed out by the MP was the fact that Bitcoin mining consumes a lot of electricity and in turn, contributes to pollution. He stated that mining power consumption had reached such a level that it consumes more supply than some small countries like Sri Lanka. There are conflicting arguments about this however, as a recent report claimed that over 74 percent of all Bitcoin mining power consumption was from renewable sources.
The report from Coinshares stated that there was a general energy mix pattern amongst mining, including both fossil fuels and renewable energy sources. The third and final point by Sobel was the fact that Bitcoin is a bubble and all bubbles burst. This statement was made in connection to Bitcoin’s November 2018 bear crash after which the value of the cryptocurrency fell below $4000.
Bitcoin however, has recovered fantastically well this year, with bullish rises forcing the asset to grow by more than 120 percent. BTC is now trading well above the $9000 mark, with a market cap higher than the fabled $150 billion mark.
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