Krugman says the price of bitcoin is helped by the fact that no one understands it and people are caught up in the mystique of this new technology.
It’s got this mystique about it, because it’s some fancy technological thing that nobody really understands. There’s been no demonstration yet that it actually is helpful in conducting economic transactions. There’s no anchor for its value. You know, unlike pieces of paper with dead presidents on them, those are anchored by the fact that you can use them to pay taxes. There’s not anchor for bitcoin. But bitcoin has developed this mystique.
So … I think it really doesn’t make a whole lot of sense.
Eulogy made by Paul Krugman