Robert Shiller, a Nobel Prize-winning economist and Yale University professor who believes bitcoin is a bubble, said that bitcoin is a social movement and its popularity in the United States varies by region. He called it an irrational response to new information. Silicon Valley is interested in this technology, which is why bitcoin is more popular on the West Coast than on the East Coast.
Shiller, who predicted the housing bubble and the dot-com bubble in the US economy, said bitcoin had caused an "epidemic of enthusiasm" and had become a social movement.
When asked about the tulip rush to which critics compare cryptomania, Shiller noted that tulips still have value, and there are very expensive tulips. If we talk about what will happen in a hundred years, Shiller believes that bitcoin will no longer exist, and if it does, it will be something completely different and with a different name.
According to the Nobel laureate, in 2013, bitcoin exceeded $1,000 only to lose 80% of its value, and this scenario could repeat itself. Although Shiller believes Bitcoin is in a bubble, he does not believe its value will necessarily fall to zero. He likes the innovative spirit and excitement generated by cryptocurrencies.
In April of this year, Shiller said the excitement surrounding bitcoin was driven by hype and emotion that was not based on strong financial fundamentals. The hype, he said, is caused by rebellion against the system. People admire things that don't come from the government. But as a global currency, bitcoin will take humanity back to the dark ages.
Shiller is one of many market observers who don't believe in bitcoin's long-term viability. The list of bitcoin skeptics also includes Jamie Dimon, CEO of JP Morgan Chase; James Gorman, Chairman Morgan Stanley; Nouriel Roubini, professor of economics at New York University of Finance; Jim Cramer, Mad Money host and best-selling author; Credit Suisse CEO Tidjane Thiam; Severin Cabanne, Deputy CEO of Societe Generale; and Katsunori Sago, chief investment officer of Japan Post Bank.
According to ccn.com
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