Home / Crypto Currency / Nobel Laureate Economist Robert Shiller Calls Bitcoin ‘Sort Of A Bubble’

Nobel Laureate Economist Robert Shiller Calls Bitcoin ‘Sort Of A Bubble’


Join our community of 10 000 traders on Hacked.com for just $39 per month.

Robert Shiller, a Nobel Prize-winning economist, called bitcoin a “sort of bubble,” which is not to say it will burst.

Shiller, the 2013 recipient of the Nobel Prize in Economics for his work in “Trendspotting In Asset Markets,” made his comments on an interview for CNBC.

Shiller made his remarks shortly after bitcoin recorded a 15.94 percent increase in value, from $6,900 to $8,000. The price rose by $1,100 within a 30-minute window, as massive buy volumes emerged.

“It may be with us for a while,” Shiller said. “To me it’s another example of faddish human behavior.” He called it glamorous, but said he doesn’t mean to dismiss it.

“But it’s a story that I think goes way beyond the merit of the idea,” he said, adding that the reason people are excited about bitcoin is more psychological than something that can be explained by the computer science department.

‘Part Of It Is Political’

“I think that part of it is political,” he said, noting that it’s an area that economists tend to neglect. “There’s a big element of people who don’t trust the government anymore, and they like the idea that this didn’t come from the government. It came from some real smart computer scientists.”

“It’s a great story for today’s markets,” he said.

Shiller’s comments are consistent with others he has made in the past. In 2014 he called bitcoin an “inspiration” because of the computer science, but as a currency he said it would return us “to the dark ages.”

Shiller predicted both the dot-com bubble and the housing bubble. Prior to the popping of both of those bubbles, he published “Irrational Exuberance” that detailed the coming crashes.

Also read: If Robert Shiller really thinks bitcoin is a bubble, he will be publishing a book about it

Shiller Joins The Naysayers

Shiller is among several market watchers to question bitcoin’s long-term viability.

Ken Griffin, the billionaire founder and CEO of the Citadel hedge fund management firm, compared bitcoin’s December price surge to the tulip bulb bubble centuries ago in Holland.

Others naysayers include Jim Cramer, former hedge fund manager, best-selling author and host of Mad Money; Nouriel Roubini, an economics professor at New York University’s Stern School of Business; Katsunori Sago, the chief investment officer at Japan Post Bank; Societe Generale Deputy CEO Severin Cabannes; and Credit Suisse CEO Tidjane Thiam.

The most infamous quote of all is left to JP Morgan Chase CEO Jamie Dimon, who said bitcoin is a fraud, while Morgan Stanley chairman and CEO James Gorman has said bitcoin doesn’t quite deserve the attention it is getting.

Featured image from Shutterstock.

Follow us on Telegram.
Read more

Check Also

Bitcoin Cash (BCH) Price Watch: Ready for Uptrend Confirmation?

Bitcoin Cash Price Key Highlights Bitcoin Cash also formed a double bottom reversal pattern and appears to be inching past the neckline. In that case, this could confirm that bulls are back in the game and ready to take price much higher from here. Technical indicators are still reflecting the presence of bearish pressure, though. Bitcoin Cash is attempting to break past the neckline of its reversal pattern to signal that an uptrend is in the cards. Technical Indicators Signals The 100 SMA is still below the longer-term 200 SMA on this time frame to indicate that the path of least resistance is to the downside. In other words, there’s a good chance that the downtrend might still be able to resume. Then again, the gap between the moving averages has narrowed enough to suggest that a bullish crossover is imminent. Once that happens, more buyers could rush in and sustain the climb. The chart pattern spans around $650 to $800 so the resulting rally could be of the same height. However, RSI is already hovering at overbought levels to indicate that buyers are feeling exhausted at this point. Similarly stochastic is indicating overbought conditions and could be ready to turn south, so Bitcoin Cash price might follow suit. BCHUSD Chart from TradingView Market Factors Cryptocurrencies like Bitcoin Cash price drew strong support from news that institutional investors are looking into the space. Most notably, BlackRock reportedly formed a team to look into investments in the space, and confirmation early this week allowed rallies to resume. This could continue to support investors’ optimistic views that a rebound could ensue in the industry after a rough second quarter. Traders are also noting the regulatory developments in South Korea as a reason to see more legitimacy and security in the industry. The post Bitcoin Cash (BCH) Price Watch: Ready for Uptrend Confirmation? appeared first on NewsBTC.

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.