Nobel laureate economist Paul Krugman says he has stopped predicting the imminent demise of bitcoin. Economists now suggest thinking of cryptocurrency as “a cult that can survive indefinitely.” However, Krugman still believes that there is no core principle of bitcoin.
Paul Krugman has compared bitcoin to a cult that can survive indefinitely
Nobel laureate Paul Krugman said on Twitter last week that he had stopped predicting the demise of bitcoin. The Nobel Prize website suggests that Krugman won the 2008 The Severig’s Riksbank Prize in Economic Sciences “in memory of Alfred Nobel” for his “analysis of business patterns and the location of economic activity”. The Economist tweaked last week:
I have stopped predicting imminent death. There always seems to be a new crop of believers. Maybe think of it only as a cult that can survive indefinitely.
Krugman is still not a fan of bitcoin, however, stressing that there are no basic principles to discuss in cryptocurrency.
“B T c Is not a new innovation; It has been around since 2009, and in that time no one has found any good legal use for it, “Krugman said.” It’s not a convenient means of exchange; it’s not a stable store of value; it’s certainly Not a unit of account. “
In an opinion article published in The New York Times on Thursday, Krugman compared the craze of cryptocurrency to the Ponzi scheme. “Twelve years later, cryptocurrency plays almost no role in normal economic activities. Almost the only time we hear of them as a means of payment – as opposed to speculative trading – is associated with illegal activity, such as money. The laundering or bitcoin ransom is the colonial pipeline that is paid to the hackers who shut it down, “Krugman described, adding:
Why are people willing to pay large sums of money for properties that do nothing? The answer is clearly that the prices of these assets keep rising, causing early investors to make a lot of money, and their success continues to attract new investors.
“Its value rests on the notion that it is a technologically sophisticated way to protect yourself from the inevitable collapse of fiat money, which is one of these days, or perhaps one of these centuries. Or, Liberal derp plus technobabble as I say, ”the economist also tweeted.
“It might sound like a speculative bubble to you, or maybe a Ponzi scheme – and speculative bubbles are, in fact, natural Ponzi schemes,” Krugman continued. “But can the Ponzi scheme really last so long?” Actually, yes: Bernie Madoff ran his scam for almost two decades, and it would have been longer if the financial crisis had not intervened… Now, a long-running Ponzi scheme needed a narrative Happens – and the narrative is where crypto really excels. “
However, the Nobel Prize-winning economist concluded:
Is cryptocurrency going to crash soon? Not necessary.
What do you think about Paul Krugman’s outlook on bitcoin and cryptocurrency? Let us know in the comments section below.
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