Re: Crypto is more like “a psychological experiment than a serious investment"
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 FuninUSA for updated data about cryptocurrency)
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?
"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 FuninUSA for updated data about cryptocurrency)
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?
For thoughts like this, the only explanation would be based on perception and there are some valid assumptions made here but one thing I have come to know is that aside from the Tulip Mania in the 17th Century that he made reference to, since I was not there and haven't read any literature on it, I have not seen any ponzi scheme that have survived for a decade and covered the amount of grounds that bitcoin covered in such short time. The most successful of them have been the one that spends one year while others crashed in a matter of months.
On the issue of psychological experiment, I think that he was ill advised because he focused on only the currency part of bitcoin without considering technology behind it which is real and not a figment of imaginations this has been attested to be one of the best invention in the 21st century. I have even read about PWC opening a new line of audit based on blockchain and they already have clients in that field.