Economics Nobel laureate Paul Krugman has decided to end bitcoins

247 The 2008 Nobel Laureate in Economics, Paul Krugman, 69, warned of “the end of Bitcoin.” In an article entitled Blockchains, what is their use? (“Blockchains, what are they for?”, in Portuguese) and published in The New York Times (USA), Krugman states that blockchains are useless. He criticized the expression “crypto winter” because he believes that this time around, winter will not be just another season in cryptocurrency prices.

“Crypto-asset prices have plummeted, while a growing number of crypto institutions have collapsed amid allegations of scandal,” the American said.

“A lot of people say we’re going through a ‘crypto winter.’ But that might be an understatement. This sounds more and more like Fimbulwinter, the endless winter that, in Norse mythology, precedes the end of the world — in this case, the world of crypto, not just cryptocurrency.” , but the whole idea of ​​organizing economic life around the famous ‘blockchain'”.

According to North America, “there was an alternative and more modest justification for using blockchain technology, though not necessarily for cryptocurrency: it should provide a more secure, low-cost way to track transactions and other things in general.”

“But that dream also seems to be dying. Amid all the hype and fury about FTX, I’m not sure how many people have noticed that the few institutions that have seriously tried to profit from blockchains seem to be giving up,” she continued. FTX is a cryptocurrency exchange based in the Bahamas, Central America.

Five years ago, it should have been a big deal — a sign of popular acceptance — when the Australian Stock Exchange announced that it planned to use the blockchain platform to filter and settle trades. Two weeks ago, I quietly canceled the plan, eliminating $168 million in losses.”

According to North America, “the cryptocurrency bubble has had huge costs for society as a whole.” “Bitcoin mining alone uses as much energy as many countries; I have been trying to estimate the value of the resources expended in producing the essentially useless tokens, probably in the tens of billions of dollars, not counting the environmental damage.”

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Non-fungible tokens

Token, in the field of cryptocurrency, is the digital representation of an asset. Non-Fungible Tokens (NFT’s) are commodities whose value can change according to speculation around them. NFT products are products that cannot be exchanged for another, like a sculpture, for example – they cannot be exchanged; There is nothing else like it, same work.

When something is purchased with an NFT certificate, the person receives a history of the purchase in a database called the blockchain, where sales information is recorded to prove the transaction made by the buyer. Being a non-fungible token means having a digital certificate of ownership, an assurance of authenticity.

Fungible goods are those that can be exchanged. For example, a $10 bill can be exchanged for two $5 bills.

stablecoins

Stablecoins are a type of digital currency with low volatility. The idea is to control the high volatility of the asset. These currencies are usually generated on the blockchain.

Stablecoins are backed by tangible real assets that have their own value, such as oil. These are currencies that can be pegged to a commodity in the real world. It can also be backed by currencies such as the dollar and the euro. It is as if the value of a stablecoin corresponds to the same value of a product on a given day.

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