Paul Krugman Slams Trump's Bitcoin Advocacy: Nobel Laureate Calls It 'Government Bailout Of A Scandal-Ridden Industry'

Nobel laureate and renowned economist Paul Krugman stuck to his harsh views on Bitcoin (CRYPTO: BTC), calling it "economically useless" and questioning presidential hopeful Donald Trump's support for the asset class.

What Happened: In an opinion piece for the New York Times, Krugman came down heavily on the Republican Party's ongoing embrace of cryptocurrencies. 

He labeled Trump's recent advocacy of a national Bitcoin stockpile a "government bailout" of a scandal-ridden, value and environment-destroying industry.

Krugman used a 2022 report to illustrate cryptocurrencies’ low penetration into mainstream financial markets, while simultaneously taking a swipe at their role in aiding money laundering and extortion.

The 2008 Nobel Economics Prize winner also threw shades at Trump, questioning his 360-degree pivot from calling Bitcoin a "scam" to now positioning himself as the "Crypto President."

See Also: Trump Odds Tumble Sharply After Biden’s Withdrawal On Crypto Betting Platform; Polymarket Trader Down $72,000 After Betting On Former President

Why It Matters: Krugman has been an outspoken critic of Bitcoin and cryptocurrencies. 

He famously said after the collapse of the cryptocurrency exchange FTX in December 2022 that the “black swan” event could be the beginning of the end for the cryptocurrency industry and the very idea of a blockchain.

As things stand, the cryptocurrency winter of 2022 appears to be a distant memory, as Bitcoin has increased by more than fourfold since then.

The resurgence has raised hopes in the sector, and when combined with political support, at least from Republicans for the time being, there could be a lot to look forward to.

Price Action: At the time of writing, Bitcoin is exchanging hands at $$66,071.67, down 1.29% in the last 24 hours, according to data from Benzinga Pro.

Did You Know? 

• Congress Is Making Huge Investments. Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool.

Photo courtesy: Flickr