Nobel laureate Paul Krugman claims that bitcoin has remained “economically useless.” He criticized the support bitcoin and crypto have from former U.S. President Donald Trump and the Republican Party. Moreover, he stressed: “Tech-bro support for Trump and Vance also seems to have a lot to do with one specific issue: cryptocurrency.”
Nobel Laureate Paul Krugman Says Bitcoin Is 'Economically Useless' — Criticizes Trump's Crypto Support
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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, in an opinion piece published Monday in the New York Times.
Krugman underscored the economic futility of bitcoin, asserting:
The truth is that bitcoin, which was introduced 15 years ago, an eon in tech time, remains economically useless.
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 criticized the significant political support that cryptocurrency has garnered in the Republican Party. He noted that former U.S. President Donald Trump has now become a strong advocate for bitcoin, despite previously calling BTC a scam, reflecting the alignment of tech billionaires who back figures like J.D. Vance, Trump’s running mate.
He pointed out that Vance, who has introduced legislation favorable to the crypto industry, is heavily supported by tech magnates such as Peter Thiel. Thiel’s Founders Fund, for instance, has invested $200 million in cryptocurrencies, he mentioned, adding that this tech elite sees Vance as a crucial ally in their fight against regulatory pressures on the cryptocurrency market. Krugman warns that this tech sector ethos, while appearing as populist, ultimately serves the interests of a wealthy few, masking the dubious economic value and potential risks associated with cryptocurrencies. He opined:
Tech-bro support for Trump and Vance also seems to have a lot to do with one specific issue: cryptocurrency.
Emphasizing 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,'” Krugman commented that at the 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.
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.
