Paul Krugman compared cryptocurrencies to the US mortgage crisis

American economist and Nobel laureate Paul Krugman, in his column for NYT, compared the fragility of the digital asset market to the US mortgage crisis.

“No, cryptocurrencies do not threaten the financial system — the numbers are not large enough for that,” he wrote.

Krugman also doubted the ability of digital assets to trigger a global economic crisis. However, he said that, due to low awareness of the risks, investors continue to lose money in the cryptocurrency market.

The economist cited a NORC study, which showed that 55% of digital asset holders do not have a college degree. Krugman called the results evidence that investments in cryptocurrencies have become popular among the working class.

Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation, criticized the column, calling it a “peak NYT” and noting gaslighting by the economist.

*Peak NYT* on Bitcoin, the new Krugman op-ed:

-Calls BTC the “new sub-prime”
-Says it has “few legal applications”
-Gaslights by saying the non-white, working-class majority of US BTC buyers has been hurt
-Govt has “failed to protect the public” from BTChttps://t.co/FMF0mfsh6I

— Alex Gladstein 🌋 ⚡ (@gladstein) January 28, 2022

“What about the US dollar crash via inflation? Bitcoin fixes this,” said Gemini’s Bitcoin exchange CEO Tyler Winklevoss.

What about the US dollar crash via inflation? Bitcoin fixes this https://t.co/SYNxQTmBV5

— Tyler Winklevoss (@tyler) January 28, 2022

According to Troy Cross, a philosophy professor at Reed College and Bitcoin advocate, the gist of Krugman’s message is that only the rich are smart enough to invest in cryptocurrencies.

“Make it illegal for everyone else. But… Krugman himself is a rich, white Nobel laureate who missed a $3t asset class,” he added.

The gist of Krugman’s latest missive: only the rich (mostly white) are smart and capable enough to invest in crypto. Make it illegal for anyone else.

But… Krugman himself is a rich, white, Nobel laureate who missed a $3t asset class while plebs around the world front ran him.

— Troy Cross (@thetrocro) January 28, 2022

Earlier, SkyBridge Capital founder Anthony Scaramucci urged long Bitcoin holders to calm down and keep hodling.

Earlier, Binance CEO Changpeng Zhao stated the need for cryptocurrencies for the dynamic development of economies.

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