Bitcoin [BTC] it is a form of self-defeating progress, says the Nobel Prize-winning economist

Recently, Kathryn Haun, a former federal prosecutor, and Paul Krugman, a Nobel Prize-winning economist, had a debate on "Let's settle this". in which they talked about the validation of Bitcoin compared to that of the US dollar.

During the discussion, Paul Krugman claimed that Bitcoin is a "self-destructive form" of progress. He went on to add that he does not understand how to operate a validation system without paying other people. The economist said:

"But validation, someone has to invest resources in effect to say that this token that I have received is real […] I know for the most part that the dollar bill in my wallet is the real one because it's a bit difficult to reproduce. "

The main obstacle to producing high quality counterfeit dollar bills is that the secret department of the treasury department would track people down. This was followed by the economist stating that the whole point of the cryptocurrency is that there should not be the secret service that validates the currency. However, this would require real resources to validate the currency.

Nonetheless, this statement was met with dissent by the former federal prosecutor. He said it was "relatively easy" to counterfeit dollar bills with the help of modern technology. Kathryn added that during her time as a prosecutor she testified that there was a lot of counterfeit money in the United States. She said:

"But the point is that the resources are so demanding, in particular the Secret Service is such a tense agency that I can not tell you how many counterfeiters we could never pursue.You know that it's a small part of the cases that you really have an agent of secret services, has a large-scale counterfeiting – not just the case […] if someone counterfeits one hundred thousand dollars that the secret service is going to investigate them ".

Kathryn also spoke of the bifurcation of a chain. He opined that sometimes the bifurcation is good and that sometimes it can also be bad. He also added that there were too many forks and systems and in some cases, everything is "breaking".

He also said that in the current reality Bitcoin is based on Proof of Work [PoW] for the mining industry and that this consumes a lot of energy. However, Ethereum, the second largest cryptocurrency on the market, is moving to Proof-of-Stake [PoS], which would result in lower energy consumption, he added.

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Priya is a full-time member of the AMBCrypto reporting team. He is a finance specialist with a one-year writing experience. You had no value in Bitcoin or other currencies.