Robert Shiller Calls Bitcoin A Social Movement

The Nobel Prize Winner in economics Robert Shiller is one of the major naysayers standing against Bitcoin. Robert Shiller had previously called Bitcoin a bubble. Now, Robert Shiller has again come forward with comments about the cryptocurrency. According to a report by Bloomberg, Robert Shiller revealed that he has observed that Bitcoin is a “social movement” whose popularity varies majorly based on geographical factors. Robert Shiller says that bitcoin is a non-rational response of the public to new information.

In an interview on Bloomberg TV with Tom Keene and Guy Johnson, Robert Shiller said that Bitcoin is more popular in the West Coast than it is on the East Coast. The Nobel Award-winning economics professor from Yale University explained that this is because of Silicon Valley’s involvement in crypto technologies. Robert Shiller was the one who predicted the dot-com bubble and housing bubble in the economy of the United States and now he predicts that the public’s response to bitcoin is an “epidemic of enthusiasm”. Of course, in Robert Shiller’s eyes, this enthusiasm is baseless and won’t end up doing any good to most of the people who are investing in it.

The economics professor, in response to the question that whether he agrees in the comparison between bitcoin and tulip bubble from the 17th century, said that tulips have value and that there still expensive tulips in the world. The comparison was made by other popular naysayers. Shiller said that Bitcoin will not exist in the next century, even if it did, it will be something different than it is right now and it will have a different name.

Robert Shiller’s answers to every question in the interview had considerable weight in them. Everything Robert Shiller said about bitcoin, he followed an explanation after it, which makes it quite clear to us people who aren’t as much learned in fundamentals of economics. For instance, Shiller said that bitcoin is a bubble, then he explained why. In 2013, Bitcoin made history by exceeding the $1,000 price which created a lot of hype but soon after the cryptocurrency lost almost 80% of its value. Shiller said that such an event can happen again. However, it is worth mentioning that even after considering it a bubble, Robert Shiller doesn’t think that the cryptocurrency’s value will necessarily fall to zero. Robert Shiller said that he likes the excitement that bitcoin has created around the crypto technologies.

According to the economist, the excitement for bitcoin was driven by hype and emotion instead of strong financial knowledge. Shiller said that the hype itself was driven by the sense of being able to break the rules of the system by trading cryptocurrencies. He said that people living under a system for too long start admiring anything that can’t be controlled by the government of said system. Cryptocurrencies are very clear examples of this human behavior. Robert Shiller ended his interview by saying that as a currency, Bitcoin will play a major role in returning the world to the dark ages.

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