Prominent economist Paul Krugman claimed that the entire crypto market has entered an “endless winter” and will never recover again, in an opinion piece published by The New York Times. He then reiterated his theory, citing the fact that his article attracted much less crypto fraternity outrage.
in his Article, Krugman said that crypto proponents believe that blockchain, the technology that underpins nearly all cryptocurrencies, is a significant breakthrough. In essence, blockchain is a decentralized ledger, meaning it is in the public domain, maintained by clever protocols that enable many people to maintain records on many servers.
However, Krugman stated that he never received a satisfactory answer to “What’s the point?” “Why go to the trouble and expense of maintaining a ledger in multiple places, and basically carrying that ledger every time a transaction takes place?”
Another point that the economist raised was the issue of trust. He noted that a major selling point for cryptocurrencies is the fact that they are trustless, meaning you don’t need to trust a third party: a bank, an individual, or an intermediary who can handle your and your cryptocurrency transactions. can work between or holding.
However, Krugman said that recent failures in the crypto sector have shown that crypto entities are “easily tempted” to steal their customers’ assets. He cited FTX as an example, which used its customers’ assets to make risky bets.
He also mentioned the use of blockchain technology to offer a lower cost, more secure way to track transactions. “But that dream also seems to be dying,” he said.
Several companies from various sectors had expressed their intention to use blockchain technology for more secure solutions. For example, the Australian Securities Exchange (ASX) announced five years ago that it planned to use a blockchain platform to clear and settle trades.
However, the ASX recently Cancelled The plan calls for a fee of AUD$250 million ($168 million), “in light of resolution uncertainty.” Similarly, shipping giant Maersk has announced that it is ending its efforts to use blockchain to manage supply chains.
“We are, many say, going through a “crypto winter”. But this may be underestimating the matter. It is looking more and more like Fimbulwinter, the endless winter, in Norse mythology, of the world. penultimate,” he concluded.
In a tweet citing the article, Krugman said he expected more outrage from the Crypto Brothers due to his “shocking” comments. “Maybe this era really is coming to an end,” he said.
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