Nobel Economist Paul Krugman's Shocking Crypto Take: 'It's a Cult with No Legitimate Use'

A viral TikTok clip featuring Nobel Prize-winning economist Paul Krugman has ignited a fierce debate in the cryptocurrency community, with Krugman making a blunt claim that nobody is using crypto for anything legitimate. In the video, shared by creator Hasan Minhaj, Krugman asserts that crypto serves primarily as a speculative asset or a vehicle for crime, dismissing it as having no real-world utility and likening its supporters to a cult.

Photo Credit: TikTok

Crypto enthusiasts were quick to push back, arguing that cryptocurrencies offer legitimate uses in countries with unstable banking systems and facilitate efficient global transfers. They also countered that fiat currency is used more for criminal activities than crypto, challenging Krugman's perspective.

Beyond the debate over utility, concerns about crypto's environmental impact have taken center stage. An analysis by the International Energy Agency revealed that crypto mining consumed nearly 2% of the world's electricity in 2022, with projections suggesting this could double by 2026 due to rising demand from data centers and AI.

However, there is hope on the horizon. Newer technologies, such as proof-of-stake blockchains, are emerging as more sustainable alternatives, using far less energy and relying on clean electricity sources. Initiatives like the CCRI Crypto Sustainability Metrics highlight progress in reducing the carbon footprint of crypto operations.

As the technology evolves, the path forward may involve balancing innovation with environmental responsibility. For now, the debate underscores deep divisions over crypto's purpose and its costs to the planet, with viewers expressing strong opinions on both sides.