Which is to say (not disagreeing, just saw an opportunity to jump in): it has a floor value. It might not be $1000 or even $100 per ounce, but it is at least a floor of $1 or $10.

The complaint Mr Krugman is registering is that Bitcoin's don't even have that. If my car is totaled, I can always sell it for $100 for scrap. There is no bit scrap dealer.