As scandals in the cryptocurrency market proliferate and confidence in digital assets is damaged, some investors may turn to gold over bitcoin, explains Nobel Prize-winning economist Paul Krugman in an opinion piece in the New York Times.
In this context, Krugman, who has repeatedly expressed strong doubts about cryptocurrencies, notes that the price of gold has been much more stable than bitcoin over the past year, even though both have come under pressure due to rising inflation and tightening monetary policy by the Federal Reserve.
He even points out that cryptocurrencies have withstood the crises partly because of the enthusiasm of the technology’s supporters and partly because of the liberal approach to money. “However, investors are showing less and less confidence in trendy ‘technobabble’,” Krugman believes.
According to him, investors are still showing interest, but market “ups and downs” and scandals are forcing some to turn to “traditional” assets such as gold.
Krugman essentially agrees with the comments of JP Morgan CEO Jamie Dimon, who recently observed that cryptocurrencies cannot be exploited as a medium of exchange, as he argued there are not many places where one can pay with cryptocurrencies.
Krugman has previously argued that bitcoin and other cryptocurrencies are worthless, meaningless and the only value they have is the result of speculation and the enthusiasm of some investors.
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