‘Dr. Doom’ attacks Ethereum co-founder ahead of Senate crypto testimony

A prominent crypto skeptic has taken to Twitter to accuse Vitalik Buterin of duping the world.

Noted economist Nouriel Roubini has used social media to attack Ethereum co-creator Vitalik Buterin over his technology. Roubini, who is due to give evidence to the Senate on cryptocurrencies today, appeared to be irked by a subtweet from the co-founder of Ethereum referencing his fame, largely derived from predicting the financial crisis of 2008, and his role in the hearings on cryptocurrency and blockchain taking place on Capitol Hill.

Roubini, who earned the nickname ‘Dr. Doom’ from his predictions a decade ago, has consistently derided cryptocurrencies as an unstable financial instruments. The New York University professor argues that “crypto is imploding” in terms of the number of users it has, the number of transactions and rising transaction costs.

Along with economists Joseph Stiglitz and Kenneth Rogoff, in July Roubini famously attacked Bitcoin, saying it would be ‘regulated into oblivion’ by governments seeking to stave off money-laundering and tax evasion.

Buterin’s tweet, it seems, was enough to spark an angry reaction from the economist, who went on the offensive again.

He also wasn’t going to accept Buterin’s technical explanations of what’s going on behind the scenes in Ethereum development.

Roubini’s attack had also covered Ethereum’s management, the money Buterin and Joseph Lubin may have made from it, and what he describes as that “scam” of pre-mining. Buterin rebutted those charges, however.

Roubini also shared his opinion that: “ETH was marketed as decentralized and trustless when it was the opposite. And even today it remains a non compliant security as current and former scholars have shown and argued.”

The commentator’s opinion on all of this matters in the wider context due to his high standing as an economist. His thoughts are especially in focus right now, however, due to him being called to give evidence to the US Senate Banking Committee at 10am ET on October 11th in Washington D.C. There, Senators will consider reports on ‘Exploring the Cryptocurrency and Blockchain Ecosystem’. His statements on the matter so far hint that he has plenty to say.

‘Shitcoin’ Enters Common Parlance

The term ‘Shitcoin’, widely used to denote a cryptocurrency without merit, is about to enter the lexicon of the United State government, thanks to Roubini’s testimony.

Included in his witness statement, which you can read in full here, is the line: “Actually calling this useless vapourware garbage a ‘shitcoin’ is a grave insult to manure that is a most useful, precious and productive good as a fertilizer in agriculture…”

Also due to give evidence to the committee is Peter Van Valkenburgh, a policy analyst and Director of Research at non-profit thinktank Coin Center. Valkenburgh’s testimony can be read in full here.