Paul Krugman says Bitcoin is more useful than gold

in bitcoin •  6 years ago 


The economist Paul Krugman was on the scene when he spoke at the Blockchain ChainXchange conference. There were many skeptics in the audience, but Bitcoin supporters included Ripple Market Strategist's chief strategist, Cory Johnson, and cryptocurrency market research guru Thomas Lee.

A skeptic turned partisan?


Krugman began the discussion with the subject of the evolution of money, then continued on how it relates to Bitcoin. He is still a big skeptic of crypto-currencies despite his positive remarks.

Krugman avoids all reprisals by justifying himself that "Bitcoin is the only crypto-coin that he half understands" . The company is growing rapidly, as well as money. The strategist first started the debate by talking about stones, gold, silver and fiduciary money before coming to digital currencies.

To create Bitcoins, you need as much energy as you need for gold mining . "It takes us back hundreds of years,"added Krugman.

Nevertheless, he abstained from commenting on the Blockchain, being agnostic about this technology.

In addition, he questions the role of virtual currencies as a method of payment. Most of the talk with the conference audience was about skepticism (or support) from Krugman and other speakers on cryptocurrencies.

Gold is out of date, Bitcoin is the future


Also winner of the Nobel Prize in Economics in 2008, Krugman made quite surprising remarks when he compared Bitcoin to gold.

"Gold is dead to make room for Bitcoin, which is more useful. The chances for Bitcoin to be valuable in the future are great. "

On the other hand, Bitcoin has been compared to the $ 100 bill, as they are becoming less and less popular. The government accepts $ 100 cuts for tax payments, which reinforces their value, but few stores and businesses approve them. Bitcoin could also be a better alternative to transporting $ 100 notebooks from one country to another - the drug lords would be much better off .

If Krugman could change one aspect of virtual currencies, it would be to make their transaction costs more reasonable.
"If the transaction costs were reduced to reasonable amounts, it would eliminate my main opposition. "
What he does not know is that developers are working on Blockchain 3.0, which is expected to improve the scalability of the industry, thanks to the massive reduction in input and transaction costs . Whether through the Bitcoin Lightning Network or other cryptocurrencies, we are on track to remedy the situation.

Source

What do you think of economist Paul Krugman's comments on Bitcoin, gold, and $ 100 bills? Comment in the comments section below.


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