Nobel Prize winner calls Trump's Bitcoin advocacy a 'government bailout of a scandal-ridden industry'

Nobel laureate Paul Krugman has strongly criticised former President Donald Trump’s support for Bitcoin. In a recent opinion piece for the New York Times, Krugman described Trump's advocacy for a national Bitcoin stockpile as a “government bailout” of a “scandal-ridden” and “economically useless” industry.

Krugman’s Viewpoint

Krugman’s criticism is rooted in his longstanding scepticism of cryptocurrencies. He referenced a 2022 report highlighting the limited impact of cryptocurrencies on mainstream financial markets and reiterated concerns about their use in money laundering and extortion.

The Nobel laureate also questioned Trump’s shift in stance, noting the former president’s previous dismissal of Bitcoin as a “scam” and his current push to become the “Crypto President.”

Impact on Cryptocurrency

Krugman’s comments come at a time when Bitcoin’s market performance is recovering from a significant downturn. Despite the so-called cryptocurrency winter of 2022, Bitcoin’s value has surged, trading at $66,071.67—up more than fourfold since late 2022. This resurgence, combined with increasing political support, particularly from Republicans, suggests a potentially optimistic outlook for the sector.