American Economist Nouriel Roubini Says Cryptocurrency Market is Highly Centralized

Famous American Economist and New York University Professor Nouriel Roubini is popularly known as “Dr. Doom” for his accurate predictions about the 2008 Financial crisis. However, Roubini has been a vocal critic in the past for repeatedly challenging the decentralized nature of cryptocurrencies.

Robin has again fired some shots making bold statement on the decentralization of digital assets. In his latest tweet on October 7, the economist again repeated his argument calling crypto decentralization a “myth” while comparing the phenomenon with North Korea.

Roubini wrote: "Decentralization in crypto is a myth. It is a system more centralized than North Korea: miners are centralized, exchanges are centralized, developers are centralized dictators (Buterin is "dictator for life" ) & the Gini inequality coefficient of bitcoin is worse than North Korea.”

To evaluate the economic inequality in a particular region or country, the Gini-Index is often used as a measure of distribution. While pointing to this index, Roubini continued his argument saying that Bitcoin’s inequality co-efficient was the highest in the world.

In another tweet, Roubini said: "Miners, exchanges, developers are centralized [...] the inequality coefficient of BTC is worse than North Korea that has the worst inequality on earth. Crypto beats Kim Jong-un in regards to centralization and inequality.”

Roubini has been a long-time critic of Bitcoin and cryptocurrencies in general. Last year in November 2017, he predicted that as more countries start implementing stricter regulations, Bitcoin would soon find its end.

Since then, Roubini has Bitcoin several times "gigantic speculative bubble" that "feeds on itself,” while also calling the complete decentralization of crypto as “just bulls**t.”

Investing giant Warren Buffet has also been a vocal and harsh critic of digital assets and particularly Bitcoin. He thinks that putting money in Bitcoin is not investing but mere speculation. Warren said: “If you buy something like a farm, an apartment house, or an interest in a business… You can do that on a private basis… And it’s a perfectly satisfactory investment. You look at the investment itself to deliver the return to you. Now, if you buy something like bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”

He further added: “You aren’t investing when you do that. You’re speculating. There’s nothing wrong with it. If you want to gamble somebody else will come along and pay more money tomorrow, that’s one kind of game. That is not investing.”