An opinion piece by Nobel laureate Paul Krugman was published in the New York Times on 1er last December. In this article entitled “Blockchains, what are they for? ”, the cryptoskeptic gives his impressions about the future of cryptos. Here are Paul Krugman’s pessimistic statements about the new industry.
Paul Krugman predicts an endless winter chase in crypto
In his opinion piece, Paul Krugman indicated that the era of cryptocurrencies is over. The Nobel laureate believes that the crypto markets are currently facing a never ending bear market. To this effect, he described the market situation as ” Fimbulwinter“. This term refers to the Norse mythology that shows the eternal winter that will happen before the end of the world. Obviously, in the current context, it means that the crypto winter is eternal and it consists of a a sign of industrial decline.
The opinion columnist also said: “The original purpose of Bitcoin was to remove the need for trust, so you don’t have to worry about banks taking your money or governments raising its value. In reality, however, banks rarely steal their customers’ assets, while crypto businesses easily succumb to the temptation.“.
Blockchain owes its popularity to political ideologies
Krugman argues that blockchain technology may be irrelevant. According to him, if it” useless technology” became famous, it was mainly because of political ideologies.
He added: “High-tech romanticism also plays a part, with the incomprehensible discourse of crypto, for a time, a selling point.“. Krugman also believes that with the explosion of crypto pricesmany people, havefear of losing something“, started the sector.
For the Nobel laureate, one of the things that makes blockchain famous is the marketing around it. Paul Krugman believes that many costs have been incurred “in Marketing and Political Influence Buyingto popularize this technology.
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Far from dampening my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my motivation. So I decided to study and understand the blockchain and its many uses and relay the information in my pen related to this ecosystem.