Paul Krugman, a Nobel laureate, has drawn attention to the fact that the ongoing cryptocurrency surge resembles the characteristics of a housing bubble.

The esteemed economist wrote for the New York Times, making a comparison: 'The faith in digital currency is akin to the assurance in the housing market before its sudden collapse. Very few investors recognized that property values had skyrocketed beyond sustainable limits.'

He further remarked that Americans might not be equipped to handle the inflated prices associated with cryptocurrencies that have been discussed skeptically by various analysts.

In an opinion piece Krugman, who won the Nobel Prize in 2008 for his groundbreaking work in new trade theory and economic geography, expressed concern over the limited practical applications of Bitcoin. He also criticized its popularity among money launderers and criminals, stating that cryptocurrencies are built on nothing substantial, not even sand.

Paul Krugman has joined a growing list of skeptics who have voiced their concerns about the viability of cryptocurrencies.

He is not alone; many economists and influential figures, including Christine Lagarde, the head of the European Central Bank, have expressed that cryptocurrencies hold little real value, urging protection measures for inexperienced investors by regulatory bodies.

Notably, both Bill Gates and Warren Buffet echo similar sentiments and have made it clear they aren't interested in investing in crypto-assets. Gates, in particular, has stated he has no plans to dip his toes into the crypto waters, while Buffet aligns his views closely with Lagarde’s critiques.

On the other hand, there are some tech enthusiasts like Elon Musk, the mastermind behind Tesla and SpaceX, who openly back the crypto movement. Musk encourages individuals to embrace cryptocurrencies if they see potential in them, leading many investors and crypto advocates to rally behind this digital currency trend.

As the cryptocurrency landscape continues to evolve, Bitcoin's value has been on the upswing.

Recent data indicates a notable rise in crypto prices over the last few days, with Bitcoin experiencing a 2.32% increase, maintaining a substantial 46.52% dominance in the crypto sector.

In addition, Ethereum's Ether (ETH) price climbed by 3.08%, Solana (SOL) gained 3.87%, Binance Coin (BNB) saw a 4.33% uptick, and Cardano (ADA) surged by 9.32%.

As highlighted by Coinmarketcap.com, the total market cap for cryptocurrencies now sits at approximately $1.25 trillion, having risen by 2.85% in the last 24 hours, while overall trading volume in the crypto market reached $91.15 billion, marking an increase of 14.61%.

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Cryptocurrencylistings Markets report that the price of Cardano's ADA has seen a significant surge, while Bitcoin continues its upward trajectory.

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• Amogh is an enthusiastic content creator passionate about writing, communication, technology, and storytelling. He published his first poetry collection in 2021 and enjoys using the art of words to tell captivating stories.