Robert Shiller, professor of economics at Yale University and co-founder of the Case-Shiller Index, expressed his idea about cryptocurrency.
"I'm interested in bitcoin as
a sort of bubble. It doesn't mean that it will disappear, that it'll burst forever. It may be with us for a while," said Shiller.
"To me, it's interesting as another example of
faddish human behavior. It's glamorous," he added. The bitcoin craze reminds him of
tulip mania in the 17th century, the event which is considered one of the first recorded speculative bubbles where a buying frenzy and lofty expectations replace rational justifications for an item's value.
The price of bitcoin grew so fast. The cryptocurrency hurtled above $1,000 in early 2017 after trading at less than a $1 at the beginning of the decade. It even hit an all-time high north of $20,000 in mid-December. (recommend
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A lot of people have benefited from the cryptocurrency investment. But Shiller would still like to see it as a
psychology experiment. “It is more psychological than something that could be explained by the computer science department,” He said.
Bitcoin held above $8,000 on Friday morning after topping that level a day earlier. The two-day rally comes after a weak start to April likely tied to
tax-related selling. Prices dipped below $7,000 earlier this month.
Will the bitcoin disappear? What's the true value of bitcoin? What essence in bitcoin are we paying for?
While some people may be dumb as, there are still lots of people that are making lots of money from it. Some people who are millionaires today, were able to do so through what they achieved from Bitcoin. So whatever anyone has to say, all that matters is if you’re making money.
Not everyone would make money in this business, it’s somehow like all these pyramids’ or whatever they are being called. When someone is making profit another person is out there making loss.
