Crypto skeptic Paul Krugman stated that we might be witnessing the end of crypto in an editorial piece published in the New York Times.
Blockchain technology was covered in the article “Blockchains, What Are They Good For?” along with the demise of cryptocurrencies. He thinks there is no use for blockchain technology.
The economics professor claimed that the market was now going through a Fimbulwinter rather than a crypto winter.
Fimbulwinter makes an allusion to Norse mythology when it talks of “an unending winter” that comes before the end of the world. In this instance, he predicted that the crypto business would collapse this winter.
Krugman argued that the original claim that Bitcoin would eliminate the requirement for the trust had not yet materialized.
This is due to the fact that banks rarely steal from their customers’ accounts, but cryptocurrency institutions are more likely to be subject to temptation and high inflation.
The Nobel Prize winner also disputed the notion that blockchain technology and cryptocurrencies will automatically result in less expensive transactions, claiming that this had not yet happened.
Paul Krugman outlined a number of failed initiatives to use blockchain technology to address pressing issues in the real world.
One of these was Australia’s stock exchange’s attempt to use blockchain for clearing and settling trades, which was scrapped two weeks later and cost $168 million in losses to write off.