The New York Times refers to cryptocurrency as “the new subprime.”

Economist Paul Krugman, writing for the New York Times, drew parallels with crypto and the subprime crisis of 2008.

In his scathing opinion piece, Krugman made mention of the near 50% drawdown in total market cap from November 2021 highs, saying, it’s uninformed participants that are hurting the most.

“But 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.”

From that, he likens the subprime crisis with digital currencies, all the while seizing the opportunity to rehash debatable arguments, including crypto’s part in money laundering and tax evasion.

Krugman’s main point centers around “excluded groups” getting into risky financial situations, to which they are neither prepared for nor have the financial security to bear.

But what Krugman fails to grasp is why “excluded groups” are willing to risk it all in the first place.


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