Krugman asked in his Twitter account that “if a digital currency isn’t actually used for any transactions, is it, you know, actually a currency?” His question seemed to reveal his sentiments on the New York Times article on July 1 entitled, “Here’s Some Cryptocurrency. Now Please Use it,” referring to San Francisco firm Ripple.
The aforementioned article said that Ripple has become one of the most notable startups of the last decade, mainly thanks to the surge in the value of XRP — the firm’s digital token which was created six years back.
“Now comes the hard part,” the article said, which is “persuading people to use XRP for something other than speculative trading. “Today almost no transactions are happening, other than on virtual currency exchanges where people bet on their price,” the article added.
In light of what the article conveyed, Krugman backed a prominent argument for a cryptocurrency which, in his observation, does as it should: Bitcoin Cash (BCH). Despite his failure to mention Bitcoin Cash itself, but those on the side of the crypto argued that for a cryptocurrency to even be called one, must possess one property: it must be used. Otherwise, it would only be a simple case of the Greater Fool Theory.