In late-2025 Substack essays such as “The Trump Trade is Unraveling”, economist Paul Krugman argued that Bitcoin’s practical uses as everyday money or a clean inflation hedge are weak, that it often moves with risky tech appetite, and that much of its recent price story is political: markets pricing expectations of crypto-friendly policy. He linked a sharp pullback to doubts about how durable that patronage would be. Decrypt and others summarised the same claim for a wider audience. It is an opinion column, not a trading manual.
Krugman also stresses the darker utilities — hard-to-trace transfers, and the fact that control of keys is control of the asset — alongside the way leveraged “crypto treasury” stories are sold to people who do not see the downside. You can agree or disagree with his politics; the scam lesson is narrower. A famous byline explaining a drawdown is not a reason to fund a stranger’s “Trump trade recovery desk” or a Telegram bot promising to time the next leg.
Read macro essays as context. Keep capital decisions boring, sized, and away from unsolicited leverage pitches.
If a political-crypto story already cost you deposits, start at Get help. Beware fake recovery agents.
This article is for general information only. It is not legal or financial advice. Details change. If you have lost money, contact your bank or card issuer and use the routes on the help pages.