Famed Economist Paul Krugman Knocks Ripple (XRP) & Bitcoin (BTC) For Low Transactional Use
Paul Krugman Trolls Riple And Accidentally Makes A Case For Bitcoin Cash
The cryptocurrency market is full of people with opinions and Paul Krugman, a Nobel laureate economist, is certainly full of them. In a recent tweet, Krugman has asked “If a digital currency isn’t actually used for any transactions, is it, you know, actually a currency?”
He recently had read an article about Ripple trying to push people to use the cash instead of only speculating on it and this is why the question remains: how can you actually say that cryptos are money if everybody is only using them in the financial markets as investments and assets and not actually spending them?
Paul Krugman: An Enemy of The Cryptos
Krugman has already called the cryptocurrencies impractical, useless, antisocial, a bubble, a fraud and even “evil”. He has on occasion cheered approved how the price of the cryptos has decreased. Funnily, while Krugman is as anti-crypto as you can be, his arguments also make a case for Bitcoin Cash.
While he does not mention Bitcoin Cash by name, the supporters of this crypto now that one of their most important points converge with Krugman, as the name states, Bitcoin Cash wants to be cash and cash has to be used.
Why People Don’t Use Cryptos
Krugman’s tweet is an answer to Nathaniel Popper’s “Here’s Some Cryptocurrency. Now Please Use It”, an article published in the New York Times last week. What Popper is criticizing is that no transactions are actually being made as what most people is doing is really just making transactions on exchanges.
Popper’s argument is that it does not matter whether you do it like Ripple and throw a lot of money around, the money has to be used in order to become real money instead of a speculative asset. Krugman agrees with him (albeit with a more negative tone, certainly).
In fact, what can be seen as the major problem that Ripple is facing is that it is dumping a lot of money in promotion all over the place but people simply do not have actual reasons to spend their tokens.
In a market that is moved by speculation, why should you sell your assets if you are waiting for them to become more valuable in the future? To make people use cryptos, you have to sell them by telling people that it will be profitable to use them, not only hold them.
One of the main reasons why Ripple is so concerned to make people use the tokens is not to be labelled as a security by the SEC. If you look at previous statements from the SEC, you can see that even the organization has a knack for thinking about cryptos as assets instead of currency and only recently changed its policy about it.
Being a security will mean that less people will use Ripple and this can have a huge impact on the company and become a nuisance with time if they are not solved fast.
Is Bitcoin Cash the Answer?
An important question remains? Is Bitcoin Cash the answer? Unlike most of the other popular tokens, the cryptocurrency community around this specific coin has been focused on the long abandoned concept by Bitcoin core: it has to be a virtual currency, not only an asset.
Surely, only the future will be able to actually tell if things will actually work out as they should but it depends on the Bitcoin Cash community and on the opinions of Paul Krugman, that’s likely to happen.