Paul Krugman Crypto

Why This Nobel Prize-Winning Economist Says Crypto Could Be Entering An ‘Endless Winter’ – Bitcoin (BTC/USD)

Nobel laureate and renowned economist Paul Krugman says the collapse of FTX could be the beginning of the end for the crypto industry.

In his New York Times column, Krugman wrote that the crypto industry could be headed for an “endless winter” as most digital assets cannot prove they have real value.

“We are, many say, going through a ‘crypto winter’. But that may be understating the matter. Instead, it looks more and more like Fimbulwinter, the endless winter that precedes the end of the world in Norse mythology – in in this case, the crypto world, organizing not just cryptocurrencies, but the whole idea of ​​economic life around the famous ‘blockchain,'” Krugman said.

He noted that blockchains have yet to prove their usefulness, adding that many companies are reluctant to embrace the emerging technology.

Also Read: Crypto Analyst Who Predicted Bitcoin Crash Now Says ‘Decline to Lower Levels Will Happen Soon’

Citing an example, Krugman says: “Five years ago, it was supposed to be a big deal – a sign of mainstream acceptance – when Australia’s stock exchange announced that it intended to use a blockchain platform to trade to clean up and settle. quietly canceled the plan two weeks ago and wrote off $168 million in losses.”

“The original rationale for Bitcoin BTC/USD was that it would do away with the need for trust. So you don’t have to worry about banks getting away with your money. However, banks rarely steal their clients’ assets, while crypto institutions more easily succumb to the temptation,” he added.

Last month, Krugman expressed optimism about efforts to lower inflation, saying that a soft landing was looking increasingly likely.

“A good inflation report – core inflation for October only 3.6% annualized. Monthly data is volatile; still 6% over the past three months. But shelter accounts for more than half of that – and that’s a lagging indicator,” Krugman tweeted.

Photo: Courtesy of Commonwealth Club on flickr

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