Published on August 20th, 2015 | by bitcoin0
Paul Krugman- No Understanding of Bitcoin
Early last month, Economist Paul Krugman was asked for his opinion on digital currencies, such as bitcoin, at a 92Y event called The Genius of Economics.
It’s easy to understand why Krugman would believe bitcoin is “a bubble in multiple senses” when he does not see the key attributes of Bitcoin that make is so revolutionary.
One system (credit cards) is based on IOUs, while the other (bitcoin) creates a situation where the ones and zeroes are the actual value.
The Underlying Value of Bitcoin
After realizing that Krugman does not have an understanding of the key reasons people are already using bitcoin in the first place, it becomes easier to see why his overall views on bitcoin are off-base.
If you want to make an online transaction that cannot be blocked by a third party, you use bitcoin.