Nobel Prize-winning economist Paul Krugman criticized organizations for leaping onto the blockchain hype, in a recent tweet.
People want to cash in on the new catchphrase by flacking “blockchain something.” “Blockchain vitamin supplements next?” a Netizen joked. Other users mentioned “AI” and “cloud,” among other prominent buzzwords.
In 2017, during the height of the cryptocurrency mania, blockchain was the hottest new thing. Long Island Iced Tea Corp, a tea firm, famously changed its name to Long Blockchain, causing its stock to jump by more than 200 percent. Three people were convicted of insider trading in 2021 after buying the company’s stock before the branding.
Krugman has long been a sceptic of Bitcoin, writing an op-ed in the New York Times in 2011 titled “Golden Cyberfetters” in which he ridiculed the world’s first cryptocurrency.
The eminent American economist did not go ignoring the latest cryptocurrency market correction, which was precipitated by the demise of Terra.
Krugman claimed in a New York Times op-ed published earlier this week that the most recent bitcoin crisis is different, stating that cryptocurrency is essentially a gigantic bubble fueled by fear of missing out.
Blockchain critic takes a swipe at Bitcoin
Krugman cited “uncomfortable comparisons” between bitcoin and the subprime mortgage crisis in January.
Krugman argues that fiat currencies going “to hell” will result in a slew of additional political and societal issues that cryptocurrencies will not be able to solve.
However, proponents of cryptocurrency believe that Krugman’s views are overly narrow since he ignores recent technological advancements in the Bitcoin ecosystem.
In a Bloomberg Wealth story, he mentions Hungarian-born billionaire Thomas Peterffy’s advice to save up to 3% of personal wealth in cryptocurrencies in case fiat money fails.
Peterffy believes that cryptocurrency prices could skyrocket to millions or plummet to zero, which is why his wager is modest. He said,
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I think it can go to zero, and I think it can go to a million dollars.
Krugman stated in May that he had given up attempting to foresee Bitcoin’s rapid death, saying that its cult can “indefinitely” persist.
Crypto supporters, on the other hand, believe that, like in the past, the cryptocurrency business will be able to recover after a significant downturn.