Robert Shiller, the Nobel Prize winner in economics who has called bitcoin a bubble, has observed that bitcoin is known as a social movement together with its popularity through the U.S. varies according to geography, according to?Bloomberg. He referred to it as a non-rational a reaction to new information.
Speaking on Bloomberg TV with Guy Johnson and Tom Keene, Shiller, an economics professor at Yale University, said?bitcoin?one is the most popular about the West Coast compared to East Coast, as a result of Silicon Valley’s fascination with the technology.
‘Epidemic Of Enthusiasm’.?Shiller, who predicted each of the housing bubble and then the dot-com bubble with the U.S. economy, said the response to bitcoin is an “epidemic of enthusiasm” and its a social movement.
Asked if he will abide by the comparison between bitcoin additionally, the 17th century tulip bubble with the Netherlands that some bitcoin naysayers made, Shiller noted that tulips still carry value high are expensive tulips.
He says bitcoin will not exist in 100 years, however if it does survive, it is different from what it’s at the present time. He stated it will have a new name.
In 2019, bitcoin exceeded $1,000 in order to lose 80% of that value, Shiller noted. A great scenario can occur again.?Since he believes bitcoin to be a bubble, he doesn’t think its value will necessarily fall to zero.
While he’s got criticized bitcoin, Shiller says that he likes the innovative spirit and excitement that cryptocurrency has created.
This past April,?he was quoted saying bitcoin’s excitement was driven by hype?and emotion which was not dependant upon strong financial fundamentals. The hype, he said, is driven because of a sense of rebelling on the system. People admire some thing which does not come from the government.
As a currency, she has said bitcoin would return mankind to the dark ages.
Shiller is one kind of many market watchers who not trust bitcoin’s long-term viability. Ken Griffin, CEO and founding father of the Citadel, a hedge fund management firm, has compared bitcoin with the Netherlands’ tulip bubble.
Bitcoin naysayers contain Jamie Dimon, CEO of JP Morgan Chase; James Gorman, EO and chairman of Morgan Stanley; Nouriel Roubini, an economics professor at Nyc University’s Stern School of Business; Jim Cramer, the host of Mad Money with a best-selling author; Credit Suisse CEO Tidjane Thiam; Severin Cabannes, general deputy CEO of Societe Generale; and Katsunori Sago, Japan Post Bank’s chief investment officer at Japan Post Bank.