Never Argue With Stupid People
Mark Twain finished off this sentence with "...they will drag you down to their level and then beat you with experience." He had a way with words.
In America recently the Senate Committee on Banking heard testimony from Nouriel Roubini, an American economist and teacher at NYU's Stern School of Business. An educated man clearly, and one who the Committee were keen to hear from. The subject? Cryptocurrency.
During his testimony Mr Roubini made several pronouncements that left many crypto experts scratching their heads. It is becoming the norm for intelligent people to prognosticate "facts" as a wide range of mis-information, no doubt deliberately.
Here are just a few of the things he said;
"Since the invention of money thousands of years ago, there has never been a monetary system with hundreds of different currencies operating alongside one another"
The reality - few of the 6,000+ cryptocurrencies are trying to be currencies, most are like frequent flier miles used to incentivise to, for example, take a flight, and once earned or bought, they can be used as a means of payment for products or services. Mr Roubini thinks they are currencies because of the nomenclature - the devising or choosing of names for things.
"It is clear by now that Bitcoin and other cryptocurrencies represent the mother of all bubbles"
The reality - total losses from 7 January to 12 September in crypto was less than $700 billion. The mother of all bubbles?
$5 trillion was lost in the internet bubble of 2000 - in todays money $7.3 trillion.
The market lost almost 90% during America's great depression - this translates to just over £2 trillion in todays money.
Roubini's comment here isn't so much stupid, it's more a lie.
"The top 10 traded coins - after Bitcoin - have lost between 83% and 95% of their value since peak with an average loss of over 90%. This is a true Crypt-Apocalypse"
The reality - the definition of apocalypse is "the complete final destruction of the world". Roubini must believe the internet bubble a true Internet-Apocalypse. Amazon was down 95% from its peak to its trough - just because the price goes down does not mean its an apocalypse.
"Fiat currencies are also protected from value debasement by central banks" and "fiat money also is not created out of thin air: these liabilities of a central bank such as [America's Federal Reserve] the Fed are backed by the Fed assets; their holdings of short and longer term Treasury securities".
The reality - these statements are false on so many levels. Quantitative Easing is printing money out of thin air. In one day in 1934 the US passed the Gold Reserve Act causing the price of an ounce of gold to rise from £20.57 to $35 in one day. That's a 40% debasement in one day!
Those representing the centralised system appear to be proclaiming a fight of good v evil; they are WRONG.
This is a fight for a better system, a fairer, better world.
Most Governments and Regulators are trying to work out what to do. Obviously they are going to regulate - its what they do.
Red tape or the red carpet - the former they roll out at their peril. Crypto is here to stay.