Nobel Prize winner Paul Krugman has labeled bitcoin and other cryptocurrencies as useless, inefficient, and basically worthless. He has also described crypto as primarily a tool for criminals, and mostly a Ponzi scheme.
Paul Krugman has repeatedly trashed bitcoin and other cryptocurrencies, dismissing them as useless, wasteful, niche, and only valuable due to hype and speculation. Over the years, the Nobel Prize-winning economist and New York Times columnist has called out the crypto industry for enabling criminals, complicating transactions, preying on vulnerable people, and operating as a pyramid scheme.
Commenting on crypto, Paul Krugman wrote on July 31, 2018: “The enthusiasm for cryptocurrencies seems very odd, because it goes exactly in the opposite of the long-run trend. Instead of near-frictionless transactions, we have high costs of doing business, because transferring a bitcoin or other cryptocurrency unit requires providing a complete history of past transactions. Instead of money created by the click of a mouse, we have money that must be mined — created through resource-intensive computations”.
He further wrote, “Cryptocurrencies have no backstop, no tether to reality. Their value depends entirely on self-fulfilling expectations — which means that total collapse is a real possibility. If speculators were to have a collective moment of doubt, suddenly fearing that…
