Paul Krugman, the 2008 Nobel laureate in economics, does not seem convinced of the current cryptocurrency ecosystem. And it’s not just that, but also it compares their current situation with the one we lived in almost fifteen years agoand which gave rise to a crisis whose effects resonated around the world and which are still well remembered by those who suffered its consequences … that we are the vast majority.

A key element in the outbreak of the mortgage crisis that Paul Krugman mentions was bubble that formed around housing, with prices rising like an avalanche, while financial institutions provided mortgages with almost closed eyes, without risk analysis. The almost universal view was that the price of housing could never fall, few realized that the situation was unsustainable and that the bubble would sooner or later have to burst, which eventually happened in 2008.

Paul Krugman uses some particularly impressive phrases to equate housing as an investment before the bubble burst, with the current mentality of the cryptocurrency ecosystem and its investorswhat is more, it suggests that their “end” may come to investors with such an explosive explosion as we have experienced, when it has been more than proven that the price of housing can actually fall, and even more so.

«Cryptocurrencies have become so valuable and popular that people mistakenly think they are worth something.Paul Krugman states in a column published in The New York Times entitled From big short to big scamfrom a big “short” (an investment that bets on the negative return on the asset being invested in) to a big scam, including a reference to The Big Short, the title of a film that tells the story of a subprime crisis from the point of view of a few people who knew what happens before it happens.

Like the confidence in domestic values ​​that gave rise to the mortgage crisis, Paul Krugman believes that today we live in a situation where large numbers of opinions consider cryptocurrencies such as bitcoin and ethereum to be excellent investments, cThey condition many people who are skeptical of the news against. And then they join in as investors and inflate a bubble that could get closer to bursting every day.