In his statement, Krugman criticized the tech industry’s support for Donald Trump and J.D. Vance, highlighting their stances on cryptocurrencies. He argued that Bitcoin, often promoted by these tech leaders, is economically useless and primarily serves illegal activities such as money laundering and extortion.

Krugman likened Trump’s call for a national Bitcoin reserve to the government bailing out a scandal-ridden, environmentally harmful industry. He emphasized that technocrats’ support for Trump and Vance seems closely tied to their interest in cryptocurrencies. Krugman recalled how, in 2017, pro-Trump tech mogul David Sacks praised Bitcoin for fulfilling PayPal’s vision of a “new world currency.” Similarly, Peter Thiel’s Founders Fund invested $200 million in two cryptocurrencies last year, and Vance actively pushes for crypto-friendly legislation.

Despite the hype, Krugman noted that most people, including Trump, know very little about cryptocurrencies. Trump once called Bitcoin a “scam” but recently blamed Democrats for attacking it.

Krugman pointed out that, despite being launched 15 years ago, Bitcoin is still not widely used for legitimate transactions outside the crypto ecosystem. According to a 2022 survey, its primary uses remain money laundering and extortion.

He highlighted how crypto enthusiasts now view Trump as a key political ally. They have successfully incorporated anti-regulation stances into the Republican Party’s 2024 platform, opposed a Central Bank Digital Currency, and called for an end to what they term the Democrats’ “un-American crypto crackdown.”

At a recent Bitcoin conference, Trump went further, advocating for a national Bitcoin reserve. Krugman criticized this as a government bailout for an industry plagued by scandals and environmental concerns.

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