Wednesday, May 2, 2018

Dr. Doom proves once again that you should never send a Keynesian to a Crypto fight

As the Milken Institute Global Conference comes to a close today, a very interesting discussion during one of the segments over the weekend between cryptocurrency advocates and a cryptocurrency skeptic turned into a all-out war of words.  And while the crypto protagonists provided very little in new information to substantiate why decentralized virtual currencies will one day take over the global monetary system, their opponent, Dr. Noutiel Roubini (Dr. Doom), proved once again that you can't take a Keynesian believer to a cryptocurrency fight.

(Or for that matter, any fight in which the discussion is about sound money.)

The verbal feud started when Roubini infuriated cryptoevangelists by accusing them of doing precisely what they accuse fiat fanatics of doing: "You're just making stuff up."
"Why don’t you buy one coin, then you can tell us how it works," Mashinsky said. 
As if that weren't enough to send his blockchain evangelist co-panelists into a rage, Roubini followed it up with another equally provocative statement. 
"All this talk of decentralization is just bullshit," he said. 
According to a Bloomberg report, the discussion quickly unraveled from there, with a shouting match erupting between Roubini and blockchain entrepreneur Alex Mashinsky, who exclaimed that "everything you just said is irrelevant.' Before he became involved with blockchain, Mashinsky helped develop the Voice over Internet Protocol standard.
Mashinsky wasn't the only panel member who pushed back against Roubini. 
"I don’t even know where to begin," Bill Barhydt, who worked on cryptography for the CIA, responded to Roubini. 
Roubini was one of the first big-name academics in the world of economics to express serious doubts about blockchain. - Zerohedge
In most respects, today's mainstream economists know really little about money or monetary policy, and simply think that governments and central banks have unlocked some 'magical equation' to be able to print unlimited amounts of currency and never have to experience the repercussions of their actions.  And on the flip side, most cryptocurrency evangelists fail to realize that the majority of crypto investors see these assets purely as speculation, and not as an alternative form of currency that will one day replace the dollars/euros/yen they hold in their wallets.

Nonethless, what each side of this debate appears to have in common with the other is a strong belief in the theoretical outcomes their currencies could provide to the monetary system, which in itself is a detriment to society because neither fiat currencies are really sound money, nor is a digital version of the same that tends to fluctuate in price 5-20% on any given day.


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