Krugman: "bitcoins are in a sense the ultimate fiat currency, with a value conjured out of thin air"
I recently did a little reading into the mechanisms behind bitcoin, and am intrigued. I was skeptical but certainly understand the merit now, though I don't understand enough details (especially the transaction-fee-only endgame) to rule out vulnerabilities. However, it does seem clear that the miners actually perform a valuable service of ensuring the integrity of the bitcoin system. So, for Krugman to say that the bitcoins are created out of thin air is disingenuous, if not surprising.
I recently did a little reading into the mechanisms behind bitcoin, and am intrigued. I was skeptical but certainly understand the merit now, though I don't understand enough details (especially the transaction-fee-only endgame) to rule out vulnerabilities. However, it does seem clear that the miners actually perform a valuable service of ensuring the integrity of the bitcoin system. So, for Krugman to say that the bitcoins are created out of thin air is disingenuous, if not surprising.