Shocking Blockchain Comment from Nobel Prize Winner Paul Krugman! Nobel Prize-winning economist Paul Krugman has warned about the possibility of a winter for blockchain projects, including crypto. In a recent article published in the New York Times (NYT), an economist who criticizes blockchain as a technology and its use cites many signs that he believes that – refers to the coming winter.
Paul Krugman compared Crypto Winter to Fimbulwinter
Nobel laureate Paul Krugman warned of the coming eternal cryptocurrency winter for blockchain-based services, including Bitcoin and other cryptocurrency networks. In a NYT opinion piece published Dec. 13. 1, an economist discusses the real benefits of this technology and how there are already signs predicting future failures.
Krugman criticizes the real value of this technology when there are other centralized methods that are currently working well. In this context, Krugman explained his skepticism by saying:
What’s the point?” Why would you go to the trouble and expense of keeping a book of accounts in many places, and carrying it in the main every time a transaction takes place?
Based on this, and the recent failure of one of the largest cryptocurrency exchanges in the world, FTX, Krugman believes that this crypto winter may lead to the complete abandonment of blockchain and crypto technology. He compared it to Fimbulwinter, the winter that brings the end of the world according to Norse mythology.
A sign of failure
For Krugman, in the last few months there have been many signs of this coming abandonment. The Economist cited the recent deletion of several companies such as Maersk and the Australian Stock Exchange that made their own blockchain-based services as part of its rationale.
Furthermore, Krugman publicly criticizes Bitcoin’s raison d’être, saying that “banks rarely steal their customers’ assets, while other crypto companies are vulnerable to temptation, and high inflation destroys the value of money. money usually only happens in the middle. of politics.”
In the same line, Paul Krugman calls the verification of Bitcoin’s proof-of-work (PoW), considering the environmental damage it has caused in the tens of billions of dollars, with no apparent benefit outside the production of “tokens” useless”.
However, this opinion is different from the one he announced in May 2021. At the time, he said that although he did not believe in the origin of Bitcoin, he was sure that the market was “a cult that could go on forever.” In June, he compared cryptocurrencies to the housing bubble and the subprime mortgage crisis, saying that “it is a house built not on sand, but nothing.”