As Nobel laureate Paul Krugman often points out, the main reason Bitcoin can’t survive is that it doesn’t need to. There is no central bank to control it, the way there is for fiat currencies, so it doesn’t pose a threat to the international banking community. Yet, most critics of crypto (including Krugman) argue that a single large holder of Bitcoin could easily manipulate the markets by selling off their assets. But, as Krugman recently pointed out, that doesn’t seem likely to happen.

Nobel Laureate Paul Krugman had a change of heart about Bitcoin earlier this month, announcing that he no longer thinks it will ever die. When will the bubble burst? Krugman asked rhetorically. “I don’t know, but I don’t think it will be soon.”

Paul Krugman, the Nobel Prize-winning economist and New York Times columnist, recently changed his tune regarding bitcoin, admitting that the cryptocurrency might not be doomed after all. In a recent column, Krugman wrote that bitcoin has “clear potential for significant further growth” and could “survive indefinitely.”. Read more about bitcoin projections and let us know what you think.

Paul Krugman, winner of the Nobel Prize in Economics, says he has dismissed predictions of bitcoin’s imminent demise. The economist now suggests that cryptocurrencies should be viewed as a cult that can exist indefinitely. Yet Krugman still thinks bitcoin lacks fundamentals.

Paul Krugman compares bitcoin to a cult that can exist indefinitely

Nobel laureate Paul Krugman said on Twitter last week that he had given up on predicting bitcoin’s demise. Krugman was awarded the 2008 Sveriges Riksbank Prize for Economic Sciences in memory of Alfred Nobel for his analysis of trade patterns and the state of economic activity, according to the Nobel Prize website. Last week, the economist tweeted: I’ve stopped predicting impending doom. It seems that there is always a new generation of believers. Perhaps it should be seen as a cult that can exist indefinitely. However, Krugman is still not a fan of bitcoin and insists that the cryptocurrency has no fundamentals to speak of. BTC is not a recent innovation; it has been around since 2009, and in all that time no one seems to have found a good legal use for it, Krugman said. It is not a practical medium of exchange, nor a stable store of value, and certainly not a unit of account. In an article published Thursday in the New York Times, Krugman compared the cryptocurrency craze to a Ponzi scheme. After 12 years, cryptocurrencies play virtually no role in normal economic activity. The only time, or almost the only time, we hear of it being used as a means of payment – as opposed to speculative trading – is in the context of illegal activities, such as money laundering or the bitcoin ransom that Colonial Pipeline paid to hackers who took it down, Krugman describes, adding: Why are people willing to pay large sums of money for investments that don’t seem to pay off? The answer, of course, is that the prices of these assets continue to rise, so the early investors made a lot of money and their success continues to attract new investors. Its value lies in the fact that it is a technologically advanced means of protecting against the inevitable collapse of fiat money that will occur one of these days, or perhaps one of these centuries. Or, as I say, libertarian nonsense plus technobabble, the economist also tweeted. It may seem to you like a speculative bubble, or perhaps a Ponzi scheme – and speculative bubbles are in fact natural Ponzi schemes, Krugman continued. But can a Ponzi scheme really last that long? Actually, yes: Bernie Madoff ran his scam for nearly two decades and could have continued even longer had the financial crisis not intervened….. A long-running Ponzi scheme needs a story, and it is in that story that cryptocurrencies truly succeed. Yet the Nobel Prize winner for economics concluded: Will cryptocurrencies collapse soon? Not necessary. What do you think of Paul Krugman’s opinion on bitcoin and cryptocurrencies? Let us know your comments in the section below. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.Bitcoin, the cryptocurrency that is currently the best performing asset in the world, is getting a lot of attention from both the media and the financial industry. Although some say it will go to zero, many others believe it could replace traditional fiat currencies in the future. As Nobel Laureate and New York Times columnist Paul Krugman recently put it, Bitcoin is an extremely important innovation: “Bitcoin is the beginning of something great: a currency without a government, something necessary and imperative. But I don’t understand the system, so I am not going to invest in it.” “I think it’s going to be the ultimate safe haven currency,” he said. “Gold itself isn’t safe haven and it’s a terrible store of value because it isn’t very. Read more about how much are bitcoins worth and let us know what you think.

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