Nobel Economist Argues Investors May Turn to Gold Over Bitcoin

Paul Krugman explains in an opinion piece how scandals in the cryptocurrency market and a lack of confidence in digital assets may lead to a shift in investment from bitcoin to gold.

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.

- Advertisement -

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.

Read Also: Jamie Dimon ‘Regrets’ Calling Bitcoin a Fraud

Previous Articles:

- Advertisement -

Latest

Cryptocurrency Set to Dominate Asset Reserves by 2025

Digital assets are entering a new period of growth, with signs cryptocurrency will be prioritized for asset reserves by 2025. Fans Hash introduced mining tools...

TON Blockchain Hit by Outage, Block Production Halts Temporarily

The Open Network (TON) blockchain experienced a temporary outage on June 1, stopping block production for about 40 minutes.The issue was fixed quickly by...

Pi, IMX, ZBCN in Focus as Key Token Unlocks Threaten More Losses

The crypto market experienced a sharp drop as Bitcoin fell from $111,900 to below $104,000, resulting in widespread altcoin declines.Investors are closely watching key...

Crypto’s “Inverse Cramer”: Trader Gains Millions Opposing James Wynn

A trader known as James Wynn became notable for a $1 billion Bitcoin short position on the Hyperliquid platform.Other crypto traders have started to...

Bitcoin Drops 10% From Highs Amid Quantum Computing Warnings

Bitcoin dropped nearly 10% from its record high, falling close to $103,000 after reaching $112,000 last week. BlackRock warned that advances in quantum computing could...

Must Read

10 Best Bitcoin Debit Cards

You are reading this post because you want to get your hands on the best bitcoin debit card - right? Well, we got you covered. We...