Many Bitcoin enthusiasts were flabbergasted when they came to know that Nobel laureate economist Robert Shiller opined that Bitcoin is a bubble. In his statement the economist said that he is amazed by how people are so excited about it. He says that he tells his students that Bitcoin is not such a great idea.
Robert Shiller who won the 2013 Nobel Prize in Economics is a widely regarded academician and his opinion will definitely have some sort of implications among the policy makers around the world. He is an expert in the nature of market excesses and his opinion about Bitcoin is not going down well among Bitcoin supporters.
Shiller is ranked among the 100 most influential economists of the world and his opinion matters a lot. Talking about Bitcoin’s tremendous jump in the exchange market he said that it is all a bubble. He retorted that it is a bubble; there is no question about it. He said it’s just an amazing example of a bubble.
He had come to Davos in Switzerland to participate in the World Economic Forum, a gathering of the policy makers and economists as well as top businessmen. This Yale University professor is also of the opinion that the jump in Bitcoin, though, is logical, as it simply follows human nature which is always interested in highly-volatile markets; it is not a great idea.
Robert Shiller is Not Alone; Paul Krugman is Also Skeptical about Bitcoin
Robert Shiller seemed to be agreeing with the fact that Bitcoin was an inspiration because of fast-developing computer science. However, he didn’t quite see it that way as according to him Bitcoin was a return to the dark ages because at present there is very little clarity surrounding the crypto currency.
Earlier Paul Krugman had come up with similar ideas about Bitcoin when he had questioned the functionality of the digital currency. He had said that so far almost all of the Bitcoin discussions were on positive economics; however, he showed his skepticism about the functionality of the virtual currency and seemed deeply unconvinced.
He had then admitted that to be successful, money must be both a medium of exchange and a reasonably stable store of value and according to him it remains completely unclear why Bitcoin should be a stable store of value. It frankly is an advocacy for fiat.
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