The problem bitcoin solves
Paul Krugman, blogger, fiat-currency enthusiast and winner of the Nobel Prize in Economics earlier this year justified his scepticism about cryptocurrencies in the New York Times. He asked readers to give him a clear answer to the question: what is the problem cryptocurrency solves? He wrote: ‘Governments have occasionally abused the privilege of creating fiat money, but for the most part governments and central banks exercise restraint.’ He added that, unlike bitcoin, ‘fiat currencies have underlying value because men with guns say they do. And this means that their value isn’t a bubble that can collapse if people lose faith.’ Case closed, apparently.
