In an opinion piece published by the New York Times, Paul Krugman said that the entire crypto market has entered an “endless winter” and would never recover
Prominent economist and crypto skeptic Paul Krugman said that the entire crypto market has entered an “endless winter” and would never recover in an opinion piece published by the New York Times. He argued that we may be witnessing the end of cryptos. According to Krugman’s column, the crypto market may be heading for an “endless winter” because few digital assets can demonstrate their usefulness in the real world.
“We are, many people say, going through a ‘crypto winter.’ But that may understate the case. Instead, this is looking more and more like Fimbulwinter, the endless winter that, in Norse mythology, precedes the end of the world – in this case, the crypto world, not just cryptocurrencies but the whole idea of organizing economic life around the famous ‘blockchain,'” said Krugman.
Paul Krugman outlined a number of failed initiatives to use blockchain technology to address pressing issues in the real world. One of these was Australia’s stock exchange’s attempt to use blockchain for clearing and settling trades, which was scrapped two weeks later and cost $168 million in losses to write off.
The economist also mentioned the problem of trust in his remarks. The fact that you don’t have to trust a third party—a bank, a person, or any other intermediary that could operate between you and your bitcoin transactions or holdings—has been cited as a key selling factor for cryptocurrencies, he said.
“No doubt I’ll hear from many people still insisting that I don’t get it. But it really looks as if there never was an it to get,” Krugman concludes.
In a later tweet, he stated that he anticipated further outrage from the crypto community owing to the article’s “shocking” remarks. Perhaps this era is actually coming to an end, he said.