Trump responsible for Bitcoin crash? This Nobel laureate in economics thinks so
Bitcoin, Trump’s Barometer? In a recent article published on Substack, economist Paul Krugman, winner of the 2008 Nobel Prize, takes another hit on bitcoin. Criticizing it in almost every aspect, he takes the opportunity to claim that the recent decline in the price of BTC is directly related to Donald Trump’s loss of political influence. According to him, the decline in the power of the president led to the collapse of bitcoin, which would become a bet on “Trumpism”. We balance the gentleman’s statements.
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- Paul Krugman has argued that the recent fall in Bitcoin is related to Donald Trump’s loss of political influence.
- The economist criticized Bitcoin as an asset without economic foundations and dangerous for investors.
Krugman versus Trump: Bitcoin at the center of the debate
Paul Krugmanknown for his skepticism towards cryptocurrencies and his opposition to Donald Trumphe began by recalling all the good things he thought about Bitcoin, and here is one of them condensed quick. BTC is an asset to him without economic foundations : it is neither usable currency nor collateralinflation or financial risks.
He sees it primarily as a tool toanonymity promotion of use criminalsvector of predation against investors misinformed aa speculative object correlated with tech stocks, but more so unstable. Its historical resilience is due not so much to economic value as to dynamism almost cultic.
In short, for him bitcoin is an asset no good economic, hazardous for individuals and supported primarily by the party faith and the political environment tractable. Here is our favorite cryptocurrency dressed for winter!
But that’s not all. He then goes on to claim that Bitcoin’s recent fall reflects weaknesspolitical influence from Trump. The economist sees in this decline a “Trump’s Trade Disintegration”pointing out that the former president’s waning power caused the price of bitcoin to plummet.
The Nobel Prize also criticizes politics pro-crypto president such as creating a government bitcoin reserve and allow US citizens to invest their retirement savings in cryptocurrencies. He notes that these measures contributed to the rise of the former crypto market, but the decline in Trump’s influence had the opposite effect.
Challenging and decidedly partisan analysis from a Nobel laureate
Words from Paul Krugman immediately drew mixed reactions. On the one hand, opponents of the president see confirmation in this analysis dependence from bitcoin to politics the new strong man in the White House. On the other hand, Trump supporters and crypto reject this view and argue that bitcoin operates in an environment independent of politics.
White House spokesman Kush Desai said the administration is implementing politics help it cryptocurrencies flourish and reject Nobel Prize claims about Donald Trump. “Only a fool would ignore these policies and attribute price fluctuations to non-economic matters involving the President”he added towards the Nobel laureate.
There is no need to insult each other, but this controversy surrounding Bitcoin once again illustrates how this cryptocurrency has become an ideological battleground. For Paul Krugman, like most Bitcoin detractors, the question is not about finding qualities in BTC, or even looking for them. Bitcoin has long been cataloged in “camp of evil”from “Hard Right”from “terrible libertarians” and nothing can change their minds. One would expect more curiosity from someone who won a Nobel Prize for his work on international trade imbalances.
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