Many years ago, I ran hedge funds on Wall Street. With a long pause for philanthropic and government work, I eventually found my way to blockchain, and now, I spend my days writing about decentralized finance versus centralized finance. Some of my old Wall Street friends still run a lot of money in hedge funds, and back in 2018, they would tease me and ask if I was still “doing my crypto thing.” Even today, some of them still think that Bitcoin (BTC) is a Ponzi scheme. One of my dearest friends from my past days in finance recently sent me Nobel Prize winner and economist Paul Krugman’s opinion column on Bitcoin in the New York Times, which further reinforces the argument of the fake world of crypto. So, I took up the challenge to answer Paul’s claims.
It is clear that Krugman doesn’t think highly of cryptocurrencies. It was clear in 2013 with his initial piece in the New