I'm not sure Krugman's understanding of normal money is that great (or at least it is just developing): http://www.debtdeflation.com/blogs/2013/12/17/oh-my-paul

I'm not sure Krugman's understanding of normal money is that great (or at least it is just developing): http://www.debtdeflation.com/blogs/2013/12/17/oh-my-paul-krugman-edition/ http://www.debtdeflation.com/blogs/2013/12/17/oh-my-paul-kru... That said I also don't see that there is any reason that the value couldn't drop to zero or near zero. Maybe the next crypto currency could be called BitTulip.