Bitria “news” Bitcoin erases 300 years of monetary evolution
Economist Paul Krugman believes that cryptanalytic market and economic decline that will eventually collapse.
In his column in the New York Times he writes that there are two problems with bitcoin: transaction costs and lack of binding.
According to the economist, the money eventually came towards frictionless transactions, and bitcoin, in turn, represents 300 years of regression, returning to transaction costs associated with payment of hashing and checking the blockchain.
“Enthusiasts of the cryptocurrency effectively celebrate the use of advanced technologies to establish a monetary system for 300 years ago. Why do you want to do this? What problem does it solve? I don’t see a clear answer to this question,” writes Krugman.
He claims bitcoin has no value as a means of payment, as well as storage cost. He also argues that Central Banks did a good job providing users with a transaction with a low coefficient of friction and stable purchasing power.
“Cryptocurrencies have no support, no binding to reality. Their value depends entirely on self-fulfilling expectations – and that means total collapse is a real possibility. If the speculators had a collective moment of doubt, suddenly fearing that bitcoin is useless, well, bitcoin would be useless,” – said Krugman.
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