Nobel Prize-winning economist Paul Krugman sees parallels between the crypto market and the subprime mortgage crash.
“There’s growing evidence that the risks of crypto are falling disproportionately on people who don’t know what they are getting into and are poorly positioned to handle the downside,” he stressed.Nobel laureate Paul Krugman warned about cryptocurrency investing in an opinion piece he authored in the New York Times, published Thursday.
Nonetheless, the economist warned that “There are disturbing echoes of the subprime crash 15 years ago,” elaborating: While NORC says that “cryptocurrencies are opening up investing opportunities for more diverse investors,” Krugman pointed out that “subprime mortgage lending was similarly celebrated … it was hailed as a way to open up the benefits of homeownership to previously excluded groups.”