Known for his skeptical views on cryptocurrency, the Nobel prize in Economics 2008 Paul Krugman participated in a panel discussion at the conference ChainXChange, which was held in Las Vegas.
In the debate on the future of money, was also attended by the co-founder of Fundstrat Tom Lee and chief marketing strategist at Ripple Corey Johnson.
From the beginning Krugman admitted that not even tried to deal with cryptocurrency industry as a whole, and instead focused on bitcoin.
Bitcoin is the only thing that I even half understand.
Krugman admitted that he is concerned about the amount of power required for mining bitcoin, but, in his opinion, the leading cryptocurrency is already more useful than gold.
Gold is dead… Bitcoin is more useful than gold. There’s a chance that bitcoin will have some value in the future.
Comparing the usefulness of bitcoin with Fiat money, Krugman believes that the main problem is transaction cost. He believes that if this issue could be resolved, it will no longer is in opposition to the cryptocurrency.
Recently, Krugman published an article in “The New York Times” called “the cost of the transaction and Tethers: Why I am skeptical about the cryptocurrency”. In it, he claims that bitcoin and other cryptocurrencies have a long way to become a daily means of payment in the mainstream economy.
Eight years after the launch of the bitcoin cryptocurrency has been little progress as a means of payment. Several businesses accept cryptocurrency as a means of payment, but not due to the fact that it is convenient, but rather because of the desire to assert themselves as the best company.