The era of cryptocurrencies may be coming to an end

In an opinion piece in the New York Times, crypto skeptic Paul Krugman argued that we could see the end of crypto.

The article “Blockchains, what are they for?” discussed the end of crypto and the uselessness of blockchain technology. According to him, blockchain technology has no interest.

Krugman Describes the State of the Crypto Market as “Fimbulwinter”

The economics professor wrote that the market is not currently experiencing a crypto winter but a Fimbulwinter. Fimbulwinter refers to Norse mythology, describing “an endless winter” that precedes the end of the world. In that case, he suggested that this winter would spell the death knell for the crypto industry.

According to Krugman, the initial argument that Bitcoin would eliminate the need for trust had yet to come. This is because banks rarely steal customer funds and crypto institutions are more likely to be vulnerable to temptation and extreme inflation.

The Nobel laureate also argued against the idea that cryptocurrencies and blockchain technology will ensure cheaper transactions, saying that hasn’t happened yet.

Highlighting blockchain failures

Paul Krugman listed several failed attempts to use blockchain technology to solve real problems. These included the Australian Stock Exchange’s effort to use blockchain for trade clearing and settlement, which was canceled two weeks later with a write-off of $168 million in losses.

Furthermore, he mentioned that shipping giant Maersk abandoned its blockchain projects when it could not solve real-life problems.

Meanwhile, Krugman believes blockchain technology has become famous due to political ideologies. According to him, the space has been pushed by those wary of banks, high-tech romanticism, fear of missing out, and the incomprehensibility of crypto itself.

This isn’t the first time Krugman has predicted the end of crypto. In January, he criticized companies that jumped on the crypto bandwagon and claimed Bitcoin had no legitimate users.

However, Krugman is not alone in predicting the end of blockchain. BeinCrypto reported that Bitcoin has been declared dead over 465 times since 2010.

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