Nobel Laureate Paul Krugman Criticizes Bitcoin's Economic Futility and Political Support

Nobel laureate Paul Krugman expressed deep skepticism about bitcoin and cryptocurrency, emphasizing their growing influence in American politics

Nobel economics laureate Paul Krugman shared his deep skepticism about bitcoin and cryptocurrency in an opinion piece published Monday in the New York Times, also highlighting the growing crypto influence in American politics.

Krugman expressed skepticism over bitcoin’s economic futility and growing influence in U.S. politics. He highlighted former President Donald Trump’s shifting stance on BTC and the alignment of tech billionaires, who are supporting figures like J.D. Vance in the upcoming election.

Nobel Laureate Paul Krugman Criticizes Bitcoin’s Economic Futility, Growing Crypto Influence in U.S. Politics

Nobel economics laureate Paul Krugman expressed deep skepticism about bitcoin and cryptocurrency in an opinion piece published Monday in the New York Times, also highlighting the growing crypto influence in American politics.

“The truth is that bitcoin, which was introduced 15 years ago, an eon in tech time, remains economically useless,” Krugman wrote about bitcoin in the NYT piece.

He added: “A 2022 survey found that transactions involving crypto assets ‘are seldom used for payments outside the crypto ecosystem.’ A couple of exceptions to its uselessness are money laundering and extortion.”

The Nobel laureate went on to express skepticism over the growing crypto influence in the Republican Party, highlighting former U.S. President Donald Trump, who has now become a strong advocate for bitcoin. He also pointed out that Vance, who introduced legislation favorable to the crypto industry, is heavily supported by tech magnates such as Peter Thiel.

“For example, Thiel’s Founders Fund has invested $200 million in cryptocurrencies,” Krugman noted in the NYT piece. “This tech elite sees Vance as a crucial ally in their fight against regulatory pressures on the cryptocurrency market. An ethos that might seem populist but is really serving the interests of a wealthy few, given the dubious economic value and potential risks associated with cryptocurrencies.”

Krugman further stated: “Tech-bro support for Trump and Vance also seems to have a lot to do with one specific issue: cryptocurrency.”

He highlighted that crypto advocates have “already managed to get key parts of their wish list inserted into the 2024 Republican Party platform: ‘Republicans will end Democrats’ unlawful and unAmerican crypto crackdown and oppose the creation of a central bank digital currency.'”

“At Saturday’s Bitcoin Conference, Trump appeared to go even further than his party’s platform, calling for the creation of some form of national bitcoin reserve — a government bailout for a scandal-ridden, value- and environment-destroying industry,” Krugman added in the NYT piece.

What do you think about Paul Krugman’s view on bitcoin and the crypto industry’s political support? Let us know in the comments section below.

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