U.S. Senators are due to get in a earful later today about the cryptocurrency market from a major detractor. Coin news outlets are keeping an eye on a planned presentation by Nouriel Roubini, also fondly known in the finance community as “Dr. Doom,” before the U.S. Senate Committee on Banking, Housing and Urban Affairs October 11 – as a preview, Roubini has published his testimony, which goes on for some 30 pages castigating those who would deign to push cryptocurrencies in today’s economic context.
Spoiler alerts include Roubini’s comparison of cryptocurrency markets to “Tulipmania” and his use of derogatory language to describe crypto-enthusiasts as well as cryptocurrencies themselves. In addition to some language that, though it may be part of the industry standard, an AP journalist would deem unprintable, Roubini also uses words like “vaporware garbage” in painting a picture of a world where many coin offerings have nowhere to go but down.
While the language in the testimony seems dramatically over the top, it’s important to remember that Roubini does have his bona fides as a predictor of the 2008 housing bubble and his cogent analysis of flag theory. However, as noted in the man’s Wikipedia profile, having names like “permabear” shows how many other economic analysts view his dour advice – and how extreme it is in the spectrum.
The central premise that Roubini is coming from is one of caution – as with any type of investing, investors absolutely should analyze gains and losses over time. They should do due diligence and walk in with a sober head. They should not just jump on the bandwagon because of glamorous slogans or giddy excitement about shiny, bright things.
However, set against the absolutely icy testimony preview published for today’s hearing, U.S. legislators could also take a look at some of the very real advances that cryptocurrency as a whole has made over the past months and years. It’s also a good idea to keep in mind the vast upside that leads so many investors to make a play or diversify their portfolio practically with cryptocurrencies.
The philosophy, in a nutshell, goes like this – old national hard monies are outdated. Bitcoin and blockchain are the way of the future for transparency, versatility, and modernization. If many cryptocurrencies may be overvalued at some point in time, the long-term buy-and-hold approach is based on the idea that as these technologies are phased into our financial systems, more gains will occur somewhere within the cryptocurrency sector.
Investors have to make their own decisions. But beginners would perhaps be well served to take a helping of Dr. Doom’s advice, along with a countermeasure of guidance from those who have visions of a blockchain world somewhere in our future.