Bulletpoints:
– Nobel Laureate Paul Krugman has expressed his disapproval for cryptocurrency.
– He compared the cryptocurrency craze to the US housing market prior to its collapse.
– Recently, he compared the crypto to Tesla and its stocks.
Nobel Laureate Paul Krugman has recently joined the ranks of the world’s intellectuals and business moguls to give the thumbs-down to cryptocurrency. Last June, the American economist drew parallels between the cryptocurrency craze and the real estate bubble of the mid-2000s, stating that consumers’ belief in crypto assets is comparable to their enthusiasm in the US housing market prior to its collapse.
Fast forward six months, Krugman has compared the crypto to Tesla and its stocks. On Tuesday, the Nobel Prize laureate wrote an opinion piece in the New York Times regarding Tesla, bitcoin, and their respective market prices. In his article, he inquired: “Did the Tesla story ever make sense?” He added that “Tesla and bitcoin may have more in common than you think.”
Krugman’s remarks came after Tesla’s stock fell 11.4% in response to reports that the company reduced its manufacturing output in China. Between the first week of January 2020, and November 2021, Tesla’s stock price increased by more than 13 times. However, since then, the stock has dropped 73%, reducing the market valuation of the electric car firm from almost $1.2 trillion to less than $350 billion as of Tuesday’s close.
Paul Krugman is a notable author and educator who specializes in International Economics and Macroeconomics. He is a Yale University and Massachusetts Institute of Technology graduate and the recipient of the Nobel Memorial Prize. He has become an influential voice in the world of economics, and his opinion on the cryptocurrency market has been widely reported.
Krugman’s opinion of cryptocurrencies is that they are too risky for investors. He argues that the crypto market is too volatile and unpredictable, and that there is a risk of a sudden crash that could cause investors to lose their savings. He also believes that the market lacks the necessary regulations and oversight to ensure that investors are kept safe.
Krugman’s views on the cryptocurrency market are not shared by everyone. There are those who believe that cryptocurrencies offer potential for growth and have the potential to revolutionize the financial industry. However, it is clear that Krugman is firmly in the ‘no’ camp when it comes to investing in this digital asset class.