Economist Krugman Criticizes Trump’s Bitcoin Stockpile Proposal

TLDR

Economist Paul Krugman criticized Donald Trump and JD Vance for supporting Bitcoin
Trump suggested creating a “strategic Bitcoin stockpile” if elected president
JD Vance, Trump’s VP pick, owns Bitcoin and has proposed crypto-friendly legislation
Republicans have included pro-crypto stances in their 2024 party platform
Some tech billionaires and crypto industry figures are supporting Trump and Vance

Recent statements by Donald Trump and his vice presidential pick JD Vance supporting cryptocurrency have sparked debate in political and economic circles.

While some see this as a strategic move to attract tech-savvy voters, others, like economist Paul Krugman, are criticizing the stance.

At the Bitcoin 2024 conference in Nashville, Trump suggested that Bitcoin’s value might one day surpass that of gold. He also promised to establish a “strategic Bitcoin stockpile” if elected president. This marks a shift from his previous position in 2021 when he dismissed Bitcoin as “a scam” against the dollar.

JD Vance, selected as Trump’s running mate for the 2024 election, has shown support for cryptocurrencies in both his personal investments and proposed legislation. In 2022, Vance disclosed owning between $100,000 and $250,000 in Bitcoin. More recently, he has been working on draft legislation to make crypto regulation more industry-friendly.

The Republican Party has included pro-crypto positions in its 2024 platform. The document states, “Republicans will end Democrats’ unlawful and un-American Crypto crackdown and oppose the creation of a Central Bank Digital Currency.” This move appears to be an attempt to appeal to cryptocurrency enthusiasts and the tech sector.

However, not everyone is pleased with this pro-crypto shift. Paul Krugman, a Nobel Prize-winning economist, has criticized Trump and Vance’s stance on Bitcoin.

In a recent New York Times article, Krugman argued that Bitcoin “remains economically useless” 15 years after its introduction. He suggested that its main uses are for activities like money laundering and extortion.

Krugman also expressed skepticism about Trump’s Bitcoin stockpile proposal, calling it “a government bailout for a scandal-ridden, value- and environment-destroying industry.” He questioned the inclusion of crypto-related promises in the Republican platform, suggesting that most voters are unfamiliar with these topics.

The pro-crypto stance of Trump and Vance appears to be supported by some tech billionaires. Peter Thiel, for example, invested heavily in Vance’s 2022 Senate race. Other figures in the cryptocurrency industry are also showing support. Mike Belshe, CEO of digital asset company BitGo, was scheduled to host a fundraiser for Vance.

This alignment between certain tech industry figures and the Republican ticket is noteworthy. While Silicon Valley has traditionally been associated with more liberal politics, a subset of tech entrepreneurs and investors are throwing their support behind Trump and Vance.

Democrats are taking notice of this shift. A group of two dozen Democrats recently wrote a letter to the Democratic National Committee, urging them to take a “forward-looking approach to digital assets and blockchain technology.” They argue that crypto and blockchain technologies could have a significant impact on election outcomes.