In an opinion piece for the New York Times (1) on Thursday, 1 December 2022, a Nobel Prize-winning economist shared his thoughts on blockchain technology (NYT).
The economist in question is Paul Krugman (2), a The New York Times columnist and "Distinguished Professor of Economics at the Graduate Center of the City University of New York." Krugman "won the Nobel Memorial Prize in Economic Sciences for his contributions to New Trade Theory and New Economic Geography" in 2008.
Why does he think so?
In his opinion piece for the New York Times, Krugman—who declared himself a "crypto skeptic" in July 2018 (3)—wrote:
"Many people claim that we are currently experiencing a "crypto winter."
However, that could be an overstatement. It's beginning to resemble Fimbulwinter, the interminable winter that, according to Norse mythology, heralds the end of the world. In this instance, the cryptocurrency industry encompasses not just cryptocurrencies but the whole concept of basing economic activity on the well-known "blockchain."
"And the real question, it seems to me, is why so many people — not just innocent little investors, but also significant financial and commercial actors — bought into the notion that this awful concept was the future's wave," the author continues.
He continued, saying:
"I'm not sure how many people have noticed that the few organizations who truly tried to use blockchains seem to be giving up amid all the sound and fury surrounding FTX," .
The Australian Securities Exchange (ASX) (2) and integrated logistics major Maersk (3), who recently announced the closure of their blockchain projects, were two of his examples. In his final statement, Krugman said that even if some people could criticize him once again for not "getting it," it looks like "there never was it to get."