Nobel Prize winner Paul Krugman expressed skepticism towards cryptocurrency. Nobel laureate and economist Paul Krugman has voiced his skepticism regarding the value of cryptocurrencies in a comment issued in the New York Times on July 31st.
Krugman, who was awarded the Nobel Prize in Economics in 2008, strengthened his position as a “crypto-skeptic” by highlighting the high transaction fees and “lack of tethering” in the context of cryptocurrencies.
Krugman illustrates how the history of money has gradually moved from gold and silver coins, with an intrinsic value, to banknotes, and lately to credit cards and various other “digital methods,” all of which aimed at cheapening up purchases.
For Krugman, “those who celebrate the cryptocurrency effectively honor the use of advanced modern technology to reverse the currency system by 300 years.”
“Why would you do that? What problem does it solve? I still don’t have a clear answer to that question,” he added.
Paul Krugman challenges crypto enthusiasts to prove his crypto-skepticism wrong
Concerning the lack of crypto “tethering,” Krugman states that “total collapse is a real possibility.”
“If speculators were to have a collective moment of doubt, they suddenly feared that Bitcoin (BTC) was worthless, well, Bitcoin (BTC) would become worthless,” said Krugman.
The economist also observes that while there could be a “potential balance” in the future, only Bitcoin (BTC), out from all cryptocurrencies, simply for “black market transactions and tax evasion,” will most likely survive the collapse.
Krugman finishes by declaring that he may be wrong and then adds a call to all crypto enthusiasts to demonstrate that his crypto-skepticism is erroneous.
But if you want to argue that I am wrong, please answer the question – What problem does the cryptocurrency solve? Don’t try to silence the skeptics with a mixture of technobabble and libertarian derp, concluded Paul Krugman, former Nobel Prize winner for economics in 2008.