Funny that there is head scratching about what gives these value (agreement) but apparent unquestioned certainty about what gives the paper currencies value (coercion following confiscation of the gold receipts banking business and endless non-extinguishable debt). Says much about the writer being covered. Per Krieger, M.
The second thing Krugman does in the latest Op-Ed is to take this faux criticism and then attach it to Bitcoin. See the following paragraph:
“Hence the location in Iceland, which has cheap electricity from hydropower and an abundance of cold air to cool those furiously churning machines. Even so, a lot of real resources are being used to create virtual objects with no clear use.”
No clear use? Really, Krugman? There is nothing useful about essentially costless transfers of value on a peer-to-peer basis? There is no value to monetary transfers that eliminate expensive and parasitic middlemen? There is no value to using a public key as a way to ask for payment, thus reducing enormous security concerns caused by providing all your private information to hundreds of merchants using credit cards? No value to being able to send millions of dollars across the globe in minutes rather than days? No value to free market currencies competing with state currencies? No value to economic freedom?