Nobel Laureate Paul Krugman Insists That Bitcoin Has Almost No Legitimate Uses

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Alex Dovb­nya

Nobel lau­re­ate Paul Krug­man has start­ed 2022 with fresh anti-Bit­coin criticism

Promi­nent econ­o­mist Paul Krug­man has start­ed the new year by tak­ing anoth­er swipe at Bit­coin, claim­ing that the world’s largest cryp­tocur­ren­cy has almost no legit­i­mate uses in a recent Twit­ter thread.

Krug­man believes that fiat cur­ren­cies going “to hell” will incur a bunch of oth­er polit­i­cal and soci­etal prob­lems that one sim­ply won’t be able to fix with the help of cryptocurrencies.

Yet, pro­po­nents of cryp­to argue that Krugman’s views are too myopic since he ignores the recent tech devel­op­ments with­in the Bit­coin community. 

He cites a Bloomberg Wealth arti­cle that men­tioned Hun­gar­i­an-born bil­lion­aire Thomas Peterffy’s rec­om­men­da­tion to keep up to 3% of per­son­al wealth in cryp­tocur­ren­cies in case fiat mon­ey collapses.

Peterffy believes that cryp­tocur­ren­cy prices could soar to mil­lions or ulti­mate­ly crash to zero, which is why his bet is rel­a­tive­ly conservative: 

I think it can go to zero, and I think it can go to a mil­lion dollars.

Ray Dalio, who has repeat­ed­ly called cash “trash,” also came out in favor of Bit­coin last year, but he recent­ly clar­i­fied that he wasn’t a rag­ing bull, mere­ly rec­og­niz­ing the top cryp­tocur­ren­cy as a means of diver­si­fi­ca­tion. The leg­endary hedge fund man­ag­er con­tin­ues to stand by his pre­dic­tion that gov­ern­ments could poten­tial­ly ban Bitcoin.

Last May, Krug­man wrote that he had giv­en up on try­ing to pre­dict Bitcoin’s “imme­di­ate demise,” claim­ing that its cult can sur­vive “indef­i­nite­ly.”

In an op-ed pub­lished by the New York Times, Krug­man wrote that the cryp­tocur­ren­cy was “a long-run­ning Ponzi scheme” that can be com­pared to the sham orches­trat­ed by Bernie Mad­off.

The Nobel lau­re­ate argued that the val­ue of the largest cryp­tocur­ren­cy is being inflat­ed by unsub­stan­ti­at­ed claims about the impend­ing demise of fiat money.



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