Nobel Prize-winning economist Paul Krugman Tesla has more in common with Bitcoin than you might think. He said Tesla’s sales depended in part on the perception that CEO Elon Musk was a “cool guy” while Bitcoin’s price was “maintained by a hardcore group of true believers.” I explained that I do.
Paul Krugman compares Tesla to Bitcoin
Paul Krugman said in 2008 Alfred He won the Nobel Memorial Economic Sciences Sveriges his Riksbank Prize Did. The New York Times published an opinion piece on Tuesday about Tesla, Bitcoin, and their massive valuations. He wrote:
Tesla and Bitcoin may have more in common than you think.
This economist argued that giants such as Apple, Microsoft, and Amazon have maintained their dominance because they “benefit from strong network externalities.” Because, broadly speaking, everyone uses their product because everyone else uses their product.”
But, “What does Tesla do? It’s hard to see what will give us a long-term lock on the electric vehicle business,” Krugman explained. “Where are the strong network externalities in the electric vehicle business?” “Electric vehicle production doesn’t look like a network externality business.” 29}
It is difficult to explain the enormous valuation the market gave Tesla, or even its current value, before [the price] fell. , began to explain “why Tesla was worth so much.” He believes it’s because “investors fell in love with a storyline about a brilliant, cool innovator. This guy, even if he really looked like him, had money to live long.” “Tesla’s sales depend, at least in part, on the perception that Musk himself is a cool guy,” Krugman said. I am sure there will be,” he added.
Concerning the similarities between Tesla and Bitcoin, the Nobel Prize-winning economist explained:
Despite years of effort, , no one has yet been able to find a full-fledged use for cryptocurrencies other than money. Washing. But despite this, prices skyrocketed in hype and are still maintained by a hardcore group of true believers.
Nevertheless, something similar did happen,” Krugman concluded.
At the time of this writing, Tesla’s stock has fallen 70% year-to-date and Bitcoin’s price has fallen 65% over the same period.
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