Paul Krugman (Paul Krugman), received in 2008 the Nobel prize in Economics, expressed a skeptical attitude towards cryptocurrencies, which, ultimately, he predicts the collapse. His criticism is based on the high cost of transactions and lack of “anchor” to reality.
Assessing the money in a historical context, he sees that the supporters of the cryptocurrency under the guise of trying innovative ideas to abandon the idea of simplifying the process of buying things and return to the monetary system 300 years ago.
“Why do it? What problem does it solve? I have not seen a clear answer to this question”, – he said.
The success of bitcoin over the 8 years of its existence Krugman skeptical about. He believes that many companies announce support for bitcoin payments only in order to show their innovativeness, not because it brings any benefit.
The Nobel laureate also believes that the moment speculating on the interest in bitcoin faces collectively doubted it, fearing that he has no value, it really will be lost. And although, in his opinion, of all the bitcoin cryptocurrency have the highest chances of survival, it will be in black markets and for tax evasion, and further disappointment will lead the whole system to crash.
At the same time, the economist is willing to admit they were wrong, if the answer to the question of what problem is solved by cryptocurrencies.
Recall that the Nobel laureate 2013 in the field of Economics Robert Schiller (Robert Shiller) has repeatedly criticized bitcoin, calling it a “social movement”, and the popularity of cryptocurrencies — “an irrational response to new information.” Later he was joined by the winner of the award 2017 Richard Thaler (Richard Thaler), which came to the conclusion that the cryptocurrency market is more like a bubble. In mid-may, the head of the Federal reserve Bank of St. Louis , James Bullard (James Bullard) also stated that cryptocurrency ICO and throw US into the past.