An opinion piece by Nobel laureate Paul Krugman was published by the New York Times on 1er last December. In this article entitled “Blockchains, what are they for? ”, the cryptoskeptic gave his impressions regarding the future of cryptos. Here are Paul Krugman’s pessimistic statements about the new industry.
Paul Krugman predicts a perpetual pursuit of crypto winter
In his opinion piece, Paul Krugman has indicated that the era of cryptocurrencies has come to an end. The Nobel laureate believes that crypto markets are currently facing a endless bear market. To this effect, he described the state of the market as ” Fimbulwinter“. This term refers to Norse mythology which indicates an endless winter that occurs just before the end of the world. Obviously, in the current context, it means that the crypto winter will have no end and it constitutes a harbinger of industry decline.
The opinion columnist also said: “Bitcoin’s original raison d’être was to remove the need for trust, so you wouldn’t have to worry about banks taking your money or governments inflating its value. In reality, however, banks rarely steal their customers’ assets, while crypto businesses succumb more easily to temptation.“.
Blockchain owes its popularity to political ideologies
Krugman argues that blockchain technology is arguably irrelevant. According to him, if this” useless technology” became famous, it is mainly thanks to political ideologies.
He added : “High-tech romanticism also played a part, with the very incomprehensibility of the crypto discourse having been, for a time, a selling point.“. Krugman also believes that with the explosion of crypto pricesmany people, havingfear of missing something“, have embarked on the sector.
For the Nobel laureate, one of the things that made blockchain popular was the marketing around it. Paul Krugman believes that significant expenditure has been made “in Marketing and Political Influence Buyingto make this technology famous.
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