Why are economists so afraid of Bitcoin?

[NChosting]

Its like the economists have gone on a witch hunt against Bitcoin!

Whats their problem?

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[4mherewego]

Bitcoin is a real world experiment. They know deep down that their theories are wrong and are afraid bitcoin will prove it...

[Misesian]

When the mainstream economic opinion is that having a central bank is beneficial to an economy of course they're going to shit on a currency that has a fixed supply and is decentralised

[Erdogan]

Afraid? More like ignorant.

This is CNN Money:

Of the 30 Wall Street experts surveyed by CNNMoney, more than 70% said they don't follow or analyze Bitcoin.

D.A. Davidson's Fred H. Dickson said it's "too wild to forecast," while Bell Investment Advisor's Matt King and Becker Capital Management's Mike McGarr admitted they had "no clue."

Predictions from the brave few that were willing to make an estimate were all over the map.

Chase Investment Counsel president Peter Tuz expects Bitcoin will be worth nothing at the end of year, and Gary Goldberg Financial Services president Oliver Pursche also agrees the price of the digital currency will implode.

A few strategists expect Bitcoin will be worth something next year, but nobody thought the price of Bitcoin would go sharply higher again. The most bullish estimates ranged from $500 to $1,000. To top of page

http://money.cnn.com/2014/01/07/investing/fed-qe-end-survey/index.html

By the way, they think QE ends this year. Nothing about unwinding.

[Lloydie]

Economists are allergic to deflation and bitcoin is a deflationary currency.  Yes i agree that deep down they fear that their bulldust inflationary theories are false.

[skivrmt]

Its like the economists have gone on a witch hunt against Bitcoin!

Whats their problem?

Not sure its a witch hunt per say but it's something they simple don't understand.  When people don't understand something life's first instinct is to avoid it and be careful around it until you understand it better.

Most economists that you see in print and on TV are NOT the ones you want to be listening to.  Listen to Wall Street.  They are just in the very beginning phases of buying.   Economist are book smart.  They can quote texts from economic policies from around the world.  Bitcoin isn't in a text.  It's not something they can rehash.  It's one of the reasons I was impressed with the Bank of America analyst who came out with an actual research report on Bitcoin.  It was out of the box.

[countryfree]

Really? Who is an economist?

Central bankers are afraid of BTC, but they're not economists, they are warriors protecting their local currency. Wall Street traders aren't economists either, they're salespeople at best, rogue speculators at worst.

The only people I would give the title of economist work in universities, and I still have to hear one of them, saying he's afraid of BTC.

[Bitcoinpro]

Its like the economists have gone on a witch hunt against Bitcoin!

Whats their problem?

fear of which they do not understand

[thaaanos]

Its like the economists have gone on a witch hunt against Bitcoin!

Whats their problem?

Not sure its a witch hunt per say but it's something they simple don't understand.  When people don't understand something life's first instinct is to avoid it and be careful around it until you understand it better.

Most economists that you see in print and on TV are NOT the ones you want to be listening to.  Listen to Wall Street.  They are just in the very beginning phases of buying.   Economist are book smart.  They can quote texts from economic policies from around the world.  Bitcoin isn't in a text.  It's not something they can rehash.  It's one of the reasons I was impressed with the Bank of America analyst who came out with an actual research report on Bitcoin.  It was out of the box.

sure economists dont understand it...

You know another neet Idea: Insulating a decision-maker (Satoshi) from the consequences of his decision

EDIT: Here are some more Reovolutionary Ideas Bitcoin Has
http://en.wikipedia.org/wiki/Groupthink
http://en.wikipedia.org/wiki/Escalation_of_commitment
http://en.wikipedia.org/wiki/Cash_cow
http://en.wikipedia.org/wiki/Bystander_apathy

[WompRat]

I have a degree in Economics and work in a University and the professors I have spoken to about Bitcoin have been to a large degree dismissive.  I wouldn't say any are afraid – I also think all used the phrase ‘bubble’.

It is also worth noting that there isn't a lot of money in researching Bitcoin at the moment, nor much that is new. Back in the 90s a number of papers were published on electronic cash and peer to peer payment, but back then Visa and Mastercard and various banks were looking for new ways to exploit the growth of the web and actively trying to find ways to get people to ditch cash which probably meant there was more research money available.  

[Bitcoinpro]

I have a degree in Economics and work in a University and the professors I have spoken to about Bitcoin have been to a large degree dismissive.  I wouldn't say any are afraid – I also think all used the phrase ‘bubble’.

It is also worth noting that there isn't a lot of money in researching Bitcoin at the moment, nor much that is new. Back in the 90s a number of papers were published on electronic cash and peer to peer payment, but back then Visa and Mastercard and various banks were looking for new ways to exploit the growth of the web and actively trying to find ways to get people to ditch cash which probably meant there was more research money available.  

did you check to see if the fear was burning in their eyes

[thaaanos]

Its like the economists have gone on a witch hunt against Bitcoin!

Sources?

"the economists"? Which economists are you talking about? I think most economists don't have an opinion because they don't know much about it or they just don't care.

There was a poll of 10 economists linked here recently in which a couple thought it would fail and the rest thought it was too soon to tell. Nobody said they were afraid of it.

http://krugman.blogs.nytimes.com/2013/12/28/bitcoin-is-evil/
assuming Paul is not The Devil

EDIT: and here
http://yanisvaroufakis.eu/2013/04/22/bitcoin-and-the-dangerous-fantasy-of-apolitical-money/

[skivrmt]

Its like the economists have gone on a witch hunt against Bitcoin!

Sources?

"the economists"? Which economists are you talking about? I think most economists don't have an opinion because they don't know much about it or they just don't care.

There was a poll of 10 economists linked here recently in which a couple thought it would fail and the rest thought it was too soon to tell. Nobody said they were afraid of it.

http://krugman.blogs.nytimes.com/2013/12/28/bitcoin-is-evil/
assuming Paul is not The Devil

Ok, there is one of 1000+ economists out there that think it's "evil".  There are a few more as well.  But overall, like several posters have mentioned, most economists don't know a thing about it.  Those that do don't have enough info to judge it good or bad yet. 

[thaaanos]

Its like the economists have gone on a witch hunt against Bitcoin!

Sources?

"the economists"? Which economists are you talking about? I think most economists don't have an opinion because they don't know much about it or they just don't care.

There was a poll of 10 economists linked here recently in which a couple thought it would fail and the rest thought it was too soon to tell. Nobody said they were afraid of it.

http://krugman.blogs.nytimes.com/2013/12/28/bitcoin-is-evil/
assuming Paul is not The Devil

Ok, there is one of 1000+ economists out there that think it's "evil".  There are a few more as well.  But overall, like several posters have mentioned, most economists don't know a thing about it.  Those that do don't have enough info to judge it good or bad yet. 

well when you find 1 economist that says good things about bitcoin tell me about it

[marcus_of_augustus]

Its like the economists have gone on a witch hunt against Bitcoin!

Whats their problem?

http://www.youtube.com/watch?v=ML1OZCHixR0&t=1m30s

... useful to watch closely the acceptance phase towards the end also

[Lloydie]

Bitcoin as a decentralised automated monetary system also obviates the need for economists and central banksters.

[thaaanos]

Bitcoin as a decentralised automated monetary system also obviates the need for economists and central banksters.

and workforce

[thaaanos]

Its like the economists have gone on a witch hunt against Bitcoin!

Whats their problem?

http://www.youtube.com/watch?v=ML1OZCHixR0&t=1m30s

... useful to watch closely the acceptance phase towards the end also

Respect

[MoonShadow]

I have a degree in Economics and work in a University and the professors I have spoken to about Bitcoin have been to a large degree dismissive.  I wouldn't say any are afraid – I also think all used the phrase ‘bubble’.

It is also worth noting that there isn't a lot of money in researching Bitcoin at the moment, nor much that is new. Back in the 90s a number of papers were published on electronic cash and peer to peer payment, but back then Visa and Mastercard and various banks were looking for new ways to exploit the growth of the web and actively trying to find ways to get people to ditch cash which probably meant there was more research money available.  

That is good news.  The longer Bitcoin can grow and mature without these guys' interference, the stronger it will be in the long run.  Let them fawn over whether or not the Federal Reserve will 'taper' or not.

[Lloydie]

Bitcoin as a decentralised automated monetary system also obviates the need for economists and central banksters.

and workforce

Economists and banksters can go get real jobs.