Since his birth Bitcoin (BTC) network in 2009, the project met with criticism. One of the most famous critics is the Nobel Prize winner in economics Paul Krugman. No less than 12 years ago expressed Krugman criticizes the project, which at the time could be purchased for next to nothing at a price of around $7 per Bitcoin.
Criticism of BTC
When Krugman published his article, there were only a handful of tech enthusiasts. Just six months earlier, the famous Bitcoin Pizza Day took place, where two pizzas were purchased for 10,000 BTC.
The project had already experienced relatively large growth. For this reason, Krugman described the price trend of the digital currency as a bubble that was about to burst. According to the economist, Bitcoin does not fulfill the main function of a monetary system: facilitating transactions and economic enrichment. According to Krugman, the fixed amount of 21 million BTC causes deflation, which encourages saving of the currency but reduces the actual transaction value.
The future of Bitcoin
Bitcoin has now proven itself. Although we’re not in one bullish Based on market sentiment, BTC price is still several times higher. With a price of $25,800 at the time of writing, the digital currency has seen a 360,000% increase thanks in part to increasing commitment from institutional investors.
After such exponential growth, the question remains whether we will see significantly higher prices. As Bitcoin increasingly dominates the financial world, its future remains divided. Crypto Bulls view the digital currency as the “gold of the 21st century,” with future price predictions ranging from tons to millions per Bitcoin. Others point to the environmentally friendly practices involved Mining of digital currency, volatile price movements and limited regulation. The future will have to determine who is right and what exactly the course will achieve.