Nobel winning economist shiller says bitcoin bubble may be around for a while
Yale economics professor and Nobel Prize winner Robert Shiller says that the rise of bitcoin resembles that of a bubble. Shiller, who won the Nobel Prize in economics for his work on bubbles, spoke in an interview about bitcoin. He seems the natural candidate to speak on the digital currency. According to him, bubbles are brought about by stories and not metrics.
Just after the currency was created the illusive individual disappeared. Naturally, the identity of this person remains a mystery. Of course, debate as to who the person could be remains a hot topic. Yet, describing bitcoin as a bubble is not correct, according to Shiller.
In his opinion to say something is a bubble means that it has burst and disappeared. With most financial bubbles this is not what happens. Bitcoin has certainly experienced a few burst bubbles during its existence. However, as Shiller says it could drop again, but the rise again. The number one digital currency has experienced a great So much so, that its value has more than quadrupled in value.
This was boosted by strong Japanese interest and geopolitical turmoil in North Korea. As stocks and bonds underwent a major selloff, traders turned to the digital currency as a safe haven. Since then bitcoin has continued an upward trajectory, pushing its value to new nobel winning economist shiller says bitcoin bubble may be around for a while heights.
In seven days its value has dropped by 1. According to Morgan Stanley, the crypto-revolution is not going to replace traditional fiat currencies. It added that disruption is possible, but that it would be slow to take off.
The financial services firm stated that the only way it could gain trust with the people is through regulation. At the moment, though, the bank claims that cryptocurrencies such as bitcoin are being held as assets rather than a method of exchange. Veteran trader masterluc has stated a bullish prediction. Yet, there are only four months left of the year. No doubt many people will be watching and waiting to see what happens next.
As such, he stated, in August, that those who put money into cryptocurrencies now could see a 1, percent return on their investments. American billionaire and investor Mark Cuban has said bitcoin is in a bubble.
These, nobel winning economist shiller says bitcoin bubble may be around for a while, are just a small minority that are pitting against the digital currency. As can be seen the market is continuing to advance and appears set on doing so for a while. Featured image from Flickr via Douglas Anderson. At the end of August, it said: Of course, not everyone will be jumping on board.
Follow us on Twitter or join our Telegram. Cryptocurrency has been dividing people since its inception. The number of different groups of opinions is infinite. But a group of people whose opinions should count for something, even in the decentralized and seemingly anarchistic crypto world, are economists. More precisely, economists who have received the Nobel Memorial Prize for their work. Economics is not one of the original Nobel Prizes created by Alfred Nobel's will, but the nomination process, selection criteria, and awards presentation of it are performed similarly to those of the Nobel Prizes.
It is actually a memorial prize, established by the Swedish National Bank, but it is referred to along with the other Nobel Prizes by the Nobel Foundation. It is generally regarded as the most prestigious award for that field. Nobel winning economist shiller says bitcoin bubble may be around for a while proclaiming Bitcoin is a bubble likely to collapse sooner or later are laureates Richard Thaler and Paul Krugman.
Richard Thaler is the Charles R. Inhe was president of the American Economic Association. He was awarded the Nobel prize in for his contributions to behavioral economics. In a Bitcoin Uncensored podcast Professor Fama said his part about crypto.
Nobel winning economist shiller says bitcoin bubble may be around for a while opinion on Bitcoin adoption and future is simple: What that means is that its value is likely to go to zero at some point. He joins the ever-growing group of people who like to say that crypto is a thing only beneficial to drug dealers and criminals. Also, in his opinion, crypto has no clear advantages over fiat money.
And bitcoin has this anti-government, anti-regulation feel. If it were only true. Joseph Stiglitz received his Nobel Memorial Prize inknown for analyzing markets with asymmetric information - but cannot find a good use for Bitcoin. In his opinion, Bitcoin is trying to solve a problem that never existed. We can trade in that. Why do people want Bitcoin? So by regulating the abuses you are going to regulate it out of existence.
While he has remained tight-lipped about crypto in general, he did say that centralized, bank-regulated cryptocurrencies would be a bad idea in the event of a crisis.
In his opinion, the crisis would see money rushing out of the banks and flooding the central bank, which would suddenly find itself in the position of taking the role of market intermediary, though bereft of much of the information that banks possess.
The central bank would then need to resolve the conundrum of how to inject the money back into the banking system. One would be quite hard-pressed to find a positive thing that well-distinguished economists had to say about crypto. However, it could be argued that, since crypto is an attack on traditional economics - the field most of them devoted their lives to - they feel there is nothing that crypto, and by extension Bitcoin, can bring to the table.
This is not a new thing, though: And while the opinions of Nobel Prize awardees should count for something - who was ever stopped by that? Here is what Nobel laureate economists have to say about crypto: Richard Thaler, Paul Krugman: Bitcoin is a bubble Loudly proclaiming Bitcoin is a bubble likely to collapse sooner or later are laureates Richard Thaler and Paul Krugman.
No adoption for Bitcoin because of volatility Eugene Fama. Bitcoin has no value, it will collapse Robert Shiller.
No legal functions for Bitcoin Joseph Stiglitz. Wikipedia Joseph Stiglitz received his Nobel Memorial Prize inknown for analyzing markets with asymmetric information - but cannot find a good use for Bitcoin. Conclusion One would be quite hard-pressed to find a positive thing that well-distinguished economists had to say about crypto. How Is Crypto Holding Up? Crypto Utopia or Crypto-Colonialism?