Paul Krugman a 2008 Nobel prize winner of economics throws a challenge to the cryptocurrency community and the enthusiasts alike, to explain the problems cryptocurrencies solve. He went further in a publication of New York Times opinion piece to predict the outright collapse of cryptocurrency shortly. Paul opinion relates to the traditional economists who are wary of the cryptocurrency replacing the conventional fiat currency.
Paul Krugman’s Challenge and Prediction of Cryptocurrency
A 2008 Nobel prize winner in economics Paul Krugman berates the importance of cryptocurrency by asking for the problems cryptocurrency solves, and also giving a prediction of the collapse of cryptocurrency shortly.
In the published statement, he brands himself a crypto sceptic as he argues that high transaction fee would be a barrier to the success of cryptocurrencies, citing the history of money from precious metals, to bank notes, credit cards, and other digital methods that make trades less costly and complicated. He mentions the high-cost fee of the transaction with cryptocurrency as a reversal to over 300 years ago, to which he states users are ”effectively celebrating the use of cutting-edge technology to set the monetary system back 300 years.”
To further his argument, Krugman noted the lack of tethering as factors for the possibility of the total collapse of cryptocurrency, while cryptocurrency enthusiasts see the lack of tethering as a positive feature for the cryptocurrency.
Krugman expressed an element of optimism only by describing Bitcoin as the only cryptocurrency that might survive but will function as a tool for ”black market transactions and tax evasion.”
Krugman’s Previous Failed Gambles
While the opinion of Krugman is aligned to that of traditional economists on the subject of cryptocurrency, this is not the first time the Nobel prize winner will be making an opposite opinion on an issue which was later proven wrong.
His opinion remains a topical issue for discussion for crypto enthusiasts as more pessimists cloud the community with shades of doubts. However, his tracks of failed prediction and the times which will reveal the value of cryptocurrency will do justice to the topic.