Top Economist Criticizes Republicans’ Growing Support for Bitcoin

Economist Paul Krugman remains critical of Bitcoin, especially amid the recent surge in Republican support for the cryptocurrency.

In a recent New York Times piece, Krugman criticized JD Vance, Donald Trump’s vice-presidential pick, for aligning with what he calls the “paranoid” tech elite who are enthusiastic about crypto.

Krugman argues that Bitcoin, despite being around for 15 years, has little economic value aside from illegal uses like money laundering. He is particularly skeptical of Vance’s investment in Bitcoin and recent efforts to push for more favorable crypto regulations.

The Republican party has increasingly supported cryptocurrencies this election year. Trump, at the Bitcoin 2024 conference, suggested Bitcoin might surpass gold in value and promised to create a Bitcoin reserve if elected.

Krugman, who supports Keynesian economics and government intervention in the economy, dismisses Bitcoin as a “Ponzi scheme” and criticizes Trump’s new pro-crypto stance as a reversal from his previous anti-crypto position. He also ridiculed the Republican promise to undo Democratic crypto regulations as confusing to voters.

In response, some Democrats are urging their party to engage more with the crypto sector, recognizing its growing influence as a voting bloc.