Nobel Economist Naysayer Robert Shiller Calls Bitcoin A ‘Social Movement’
Robert Shiller, the Nobel Prize winner in economics who has known as bitcoin a bubble, has observed that bitcoin is a social movement and its popularity in the U.S. varies based on geography, according to Bloomberg. He named it a non-rational response to new info.
Speaking on Bloomberg Tv with Guy Johnson and Tom Keene, Shiller, an economics professor at Yale University, mentioned bitcoin is more common on the West Coast than the East Coast, due to Silicon Valley&rsquos interest in the technologies.
‘Epidemic Of Enthusiasm’
Shiller, who predicted each the housing bubble and the dot-com bubble in the U.S. economy, mentioned the response to bitcoin is an &ldquoepidemic of enthusiasm&rdquo and is a social movement.
Asked if he agrees with the comparison amongst bitcoin and the 17th century tulip bubble in the Netherlands that some bitcoin naysayers have created, Shiller noted that tulips still carry value and there are costly tulips.
He has said bitcoin will not exist in one hundred years, but if it does survive, it will be different from what it is at the present time. He mentioned it will have a diverse name.
In 2013, bitcoin exceeded $1,000 only to shed 80% of its worth, Shiller noted. Such a scenario could happen again. While he believes bitcoin to be a bubble, he does not feel its value will necessarily fall to zero.
Even though he has criticized bitcoin, Shiller has mentioned that he likes the innovative spirit and excitement that cryptocurrency has designed.
This past April, he stated bitcoin&rsquos excitement was driven by hype and emotion that was not based on robust economic fundamentals. The hype, he mentioned, is driven by a sense of rebelling against the method. Folks admire some thing that does not come from the government.
As a currency, he has said bitcoin would return mankind to the dark ages.
Also read: Bitcoin might not be around in one hundred years, says Nobel laureate economist Robert Shiller
Bitcoin Naysayers Abound
Shiller is 1 of several market watchers who does not think in bitcoin&rsquos extended-term viability. Ken Griffin, CEO and founder of the Citadel, a hedge fund management firm, has compared bitcoin to the Netherlands&rsquo tulip bubble.
Bitcoin naysayers also incorporate Jamie Dimon, CEO of JP Morgan Chase James Gorman, EO and chairman of Morgan Stanley Nouriel Roubini, an economics professor at New York University&rsquos Stern School of Enterprise Jim Cramer, the host of Mad Cash and a ideal-selling author Credit Suisse CEO Tidjane Thiam Severin Cabannes, general deputy CEO of Societe Generale and Katsunori Sago, Japan Post Bank&rsquos chief investment officer at Japan Post Bank.
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Published at Tue, 26 Jun 2018 16:47:57 +0000