In the debate at Asia Blockchain Summit 2019, economist Nouriel Roubini criticizes Bitcoin. He argued that the network is centralized and the fact that private keys are owned by users is a very risky situation.
Roubini vs Hayes
The allegations were made in a debate between Roubini and BitMEX CEO Arthur Hayes. The economist called cryptomoneda a “total failure” because it assigns power to a small number of people. He argued that virtually all activities within the Bitcoin industry have become centralized. Mining, for example, is now in the hands of a few big players representing mining pools. The exchanges also exercise significant control over liquidity and the Bitcoin price.
Roubini also noted that a large percentage of Bitcoin coins belong to a small number of people. This means that they can easily influence the direction of the BTC price evolution.
Roubini: Bitcoin is centralized and easy to steal
In turn, Hayes said Bitcoin is a technology that gives people security and financial freedom without the need for a bank. The idea was totally rejected by Roubini.
He argued that centralized exchanges controlled 99% of cryptomonas transactions and proved to be very easy to compromise.
Nouriel Roubini criticizes Bitcoin and also asserts that it is much easier to steal large sums in Bitcoin:
“If someone threatens me with the gun and takes me to an ATM, I will not lose 300 dollars, but 300 million dollars. Bitcoin is completely unsafe. Instead of being a sophisticated financial system, it returns to the Stone Age. “
Hayes: Bitcoin never faced a 51%
Hayes tried to explain to Roubini that mining pools does not mean controlling a single operator over the Bitcoin network. These include many small miners who allocate a certain percentage of computing power to confirm and add blocks on the blockchain.
“Bitcoin did not face a 51% attack to destroy his value. Ultimately, such an attack would essentially bring the value of the infrastructure to zero. It is not in their interest to violate these rules, and therefore Bitcoin is safer than any centralized system. “