US Congress Told Bitcoin Is The ‘Mother Of All Scams’

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US Congress Told Bitcoin Is The ‘Mother Of All Scams’

Bitcoin has received its fair share of criticism from different experts and analysts over the last few years but that hasn’t dimmed its popularity. Bitcoin once again took a beating to its reputation after renowned economist Nouriel Roubini put forward a prepared testimony to U.S Congress where he called bitcoin the ‘Mother of all Scams’.

U.S Congress as well as investors around the world will pay attention to what Roubini says because he was one of the few global financial analysts who was able to predict the financial crisis in 2008. Roubini made his presentation to the U.S. Senate Committee on Banking, Housing and Community Affairs and cautioned them about the scams and financial bubble that bitcoin had caused.

He used bitcoin’s dramatic fall in value from the heights of $20,000 in December 2020 to $6,200 in October as a great example of what he was looking to convey. He said that hundreds of individuals had sought his opinion when bitcoin was at its heights and asked him if they should buy bitcoins.

Roubini said thousands of investors who had no idea about cryptocurrencies were lured into buying bitcoin because they wanted to get rich quick and ended up being scammed, swindled and cheated by crypto scammers. Many analysts on Wall Street have also supported Roubini’s claims against bitcoin but have backed blockchain technology which bitcoin operators on.

Roubini Not A Fan Of Blockchain

While hundreds of financial institutions around the world are embracing blockchain technology for the numerous advantages it offers them, Roubini is not a fan of the blockchain and debunked the technology.

In a statement, Roubini said

Now that the crypto bloodbath is in full view the new refuge of the crypto scoundrels is ‘blockchain’, the technology underlying crypto that is now alleged to be the cure of all global problems, including poverty, famines and even diseases. But as discussed in detail below blockchain is the most over-hyped and least useful technology in human history

His views regarding blockchain technology were debunked by the director of research at Coin Center. Peter Van Valkenburgh said blockchain was by no means perfect but it was an IT breakthrough that will have a positive impact on numerous fields going forward.

Valkenburgh pointed out that e-mail wasn’t perfect when it was invented in 1972 but it was tweaked over the years to become a powerful mode of communication in the 21st century and so will blockchain technology.

Roubini Tells Congress That Bitcoin Is The Mother Of All Scams

Nouriel Roubini, the Economist who predicted a housing market crash that brought about the 2008 financial melt-down, cautioned politicians against Bitcoin. He said that “Bitcoin is the mother of all scams” and blockchain is the most hyped tech ever. The news broke out during Senate hearing on cryptocurrency. With Roubini and Peter Van Valkenburgh, Director of Research at the Coin Center also joining the discussion.

Calling Bitcoin Out

Both economists sounded an alarm regarding the various aspects of digital currency and the asset class. Roubini’s criticism was particularly scathing, although it lacked substance. He noted that “Crypto is the mother or father of all scams and bubbles.” His insight comes after Bitcoin prices declined from $20,000 USD in December 2020. Moreover, he said that the 2020 bubble and its subsequent bust was the first sign. Roubini accentuated his point by saying that everyone “especially by the people with zero financial literacy” were asking him whether to buy Bitcoin or not between Thanks Giving and Christmas last year.

Roubini said that the folks who couldn’t tell the difference between stocks and bonds went into a literal manic frenzy of Bitcoin and Crypto buying. Roubini also said that “blockchain technology is most-over hyped technology ever.” He called it “a glorified spreadsheet or database”.

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Questionable Expertise

Roubini’s statement contradicts many blockchain analysts who believe in the potential of blockchain technology, especially those who stated that this disruptive technology could help various organizations. Even government could benefit from it in its tax collection efforts, and other bureaucratic endeavors. The fact that Roubini called it a glorified spreadsheet, shows ignorance about the technology and how it can manage processes in a decentralized manner. In fact, people have been transferring value on blockchain for almost 10 years now.

Roubini not only dismisses the technological prowess of blockchain that apart from creating a system in which the transfer of value can occur without central authority oversight, but he also disregards the importance of the creation of digital scarcity through Bitcoin. This might be because Roubini is a Keynesian and Bitcoin is an asset that suits Austrian School economists much better. In any case, Roubini has the wrong kind of expertise when it comes to most Bitcoin-related matters. The fact that he predicted the housing bubble in 2006, doesn’t mean that he is the perennial canary in the coal mine.

Focus on Price

It is clear that Roubini focuses on price, and criticizes Bitcoin through that very narrow, conventional lens. Bitcoin has indeed fallen by more than 65 percent. This so called “crypto-apocalypse” has the detractors saying, “I told you so.” There were other analysts agreeing to what Roubini has stated about Bitcoin and cryptocurrency but few focused on its technological prowess.

Roubini’s disdain for blockchain technology exposes his narrow view of the world. He states that “Now that the crypto bloodbath is in full view the new refuge of the crypto scoundrels is ‘blockchain’, the technology underlying crypto that is now alleged to be the cure of all global problems, including poverty, famines, and even diseases. But as discussed in detail below blockchain is the most over-hyped — and least useful — technology in human history.” Among Bitcoin and cryptocurrency enthusiasts, there are many that have warned against the blockchain hype. People in the community know that blockchain technology is not the cure for every evil, but mainstream companies like IBM are pushing this idea regardless. Maybe Roubini should set his sights on them, instead of condemning an asset he clearly knows nothing about. Or perhaps, he should focus on the next financial melt down that is brewing as interest rates climb in a world that is addicted to his beloved brand of Keynesian debt.

Tabassum Naiz

Tabassum is an enthusiastic author, web geek, writer & digital marketer, with experience writing for tech, digital and cryptocurrency blogs. Follow her on Twitter

Binary Options: Online Guide To Options Trading

Binary options are nothing but short term contracts that offer traders the opportunity to make a quick return on investment depending on the assets they select and the amount they wager.

The word Binary means two and binary options trading refer essentially to the two choices that a trader has before placing a trade.

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When a binary options trader logs into their binary options trading software account, they will see a number of different commodities depending on the binary options broker they select. These commodities can range from gold, oil, sugar and even forex trading. The trader needs to select the asset they want to wager on and choose a time frame in which the wager is to be made. Time frames for binary options trading usually range from 60 seconds to over a week but usually not more than that. The trader will then need to determine if the asset price will go up within the stipulated time or down.

Upon selecting an asset and determining a time frame for the wager, the trading software will usually provide the trader with clear information as to what their return on investment will end up being should they predict the result correctly. If the trader chooses to place a wager on the asset value going up, they will have to select the CALL option. If the trader chooses to place a wager on the asset value going down, they will have to select the PUT option. At the end of the stipulated time, the trading system will determine if the value of the asset has gone up or down and based on the result, the trader will either win or end up losing.

Placing A Binary Options Wager: Traders who are not software friendly might find it daunting to get involved with binary options trading as the task at hand might seem overwhelming. However most binary options brokers offer demo accounts for new traders to practice their trading as the demo account using the real trading software or provide them with a dedicated client account manager that will help them get accustomed to the trading software. The software becomes easy to use after a few trades are completed and is most binary options software are very user friendly.

How To Make Money With Binary Options Trading?

The global binary options trading market has continued to grow rapidly during the past five years as new traders enter the industry in an effort to start a new stream of income. Becoming a binary options trader is not a very difficult or complicated process. A binary options trader does not need to have a financial degree or any prior knowledge of binary options trading to be success.

A new binary options trader needs to realize that getting into binary trading options is not a get rich quick scheme or some new way of becoming a multi-millionaire overnight. New binary option traders are encouraged to enter the market in an effort to develop a secondary stream of income.

While it is not necessary for them to have a financial degree, it is important for them to take some time to learn about binary options trading, to develop a robust trading strategy, to experiment with a demo binary options trading account, to find a reliable binary options broker and then to start with small wagers.

Binary options traders who are successful consistently with their trading are those brokers who do not let their emotions get the better of them when they win and when they lose. We encourage all amateur binary traders to keep in mind that they can make money with binary trading options if they wager correct but they can also lose money with binary trading options if they wager wrong.

One of the most attractive features of binary trading options is the quick trading timelines that make it easy for one to make an immediate return on investment. We caution new binary options traders to not get caught up in an emotion rush and exhaust their bankroll within the first few days as that is one of the biggest mistakes that new binary options traders end up making.

How To Find A Trustworthy Binary Options Broker?

When a new trader ventures into binary options trading, one of the first things that they need to do is find a reliable and trustworthy binary options broker. This wasn’t a hard thing to do in 2008 when there were just a handful of binary options brokers but now there are hundreds of these brokers who constantly promote themselves to be the best in the business.

Choosing a binary options broker is critical to a trader’s success. Traders should never ever forget that binary options brokers make money when they lose money and as a result, binary options brokers do not always have the trader’s best interests in mind. Never fall for the ruse that the binary options broker is a friend or a trusted confidante.

Traders must remember to make decisions by themselves and not let the binary options broker influence them and take a call that is contrary to their original strategy as this move will almost always benefit the broker more than it does the trader.

Review Of Reputed Binary Options Brokers:

There are numerous online binary options brokers from around the world who are regulated and offer their services in multiple countries. We take a look at some of the most reputed, trustworthy and reliable binary options brokers and share a small review on each of the ones we have listed below. We also suggest that you do a little bit of research on your own on each of these brokers to see if they are the right broker for you.

Developing A Robust Binary Options Strategy

We would like to emphasize the importance of developing and sticking to a robust binary options strategy. This is essential if you would like to do consistently well at binary options trading. One of the biggest mistakes that amateur traders and even some experienced traders end up making during their trading is to get involved emotionally and let the highs and lows have an impact on your decision making, which almost always results in poor trading.

Binary Options Beginner Courses

In order for you to be consistently good at binary options trading it is important for you to learn the basics of binary options trading, how to use financial data, graphs and charts that your binary options broker provides you with and how to develop a robust strategy that will help you win more than you lose.

There are numerous online courses, e-books, online videos and webinars giving new traders and experienced traders a lot of essential information. Some of these courses are free and some are paid courses. We encourage new traders to take the time to study some of the new courses before they think about buying advanced courses.

There are numerous binary options online courses out there but we have taken the time to list three courses that will be greatly beneficial to amateur traders.

IQ Option: This binary options broker provides 16 short tutorials that are available for free. These lessons are not very detailed but still provide amateur traders with basic concepts that are critical for developing a strong foundation in binary options trading.

Investoo.com: This website has one course for amateur traders and one for advanced traders. The basic course for amateur traders consist of 11 lessons and all of them are free. The free lessons are detailed and very well explained and will take more than one day for a new trader to grasp all of the concepts outlined. The advanced course is a paid course and is suitable only for experienced traders. The course can be found at investoo.com.

YouTube: Tyler Chianelli: There are a number of YouTube videos outlining the basics of binary options trading and provide a lot of free content. However finding the best free YouTube tutorials can be quite a challenge. We suggest that you take a look at Tyler Chianelli channel as it provides amateur traders with some great strategy advice. New videos are regulatory uploaded to give viewers insights into the current market scenario and how they can leverage it to their advantage with binary options trading.

Binary Options Trading Scams

Just like any financial niche, the world of binary options trading has also a large number of scams. Most of these scams are carried out by unscrupulous binary options brokers who use hyped advertising, false promotions and hidden terms & conditions to con traders out of their money. The best way for new traders to protect themselves from being scammed is to work with a regulated binary options broker, to not give the binary options broker control over the trading account, to read the terms & conditions carefully and to not let the broker talk you out of withdrawing your money.

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Binary Options Trading FAQ

These are the most common questions that get asked by traders.

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