Shiller Still Doesn’t Care for Bitcoin, but Understands That Some “Smart” People Who Do
Nobel Laureate reiterates his position that Bitcoin is a bubble, but he says he understands the attraction.
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Nothing has changed the mind of Nobel Prize-winner Robert Shiller when it comes to Bitcoin. He doubled down on his comments Friday that he thinks it’s a bubble.
We reported to you in January that Shiller thought the crypto would crash and burn. The professor of economics at Yale University and co-founder of the Case-Shiller Index reiterated those same kinds of statements on CNBC Friday.
One of the things that Shiller repeated was his comparison of Bitcoin to the 17th century tulip mania theory. At that time, the price of tulip bulbs ballooned, peaked and then crashed in early 1637.
While Shiller still sees a parallel between the tulip mania and Bitcoin, he seemed a bit more open to the legitimacy of the crypto. He said he was interested in Bitcoin as sort of a bubble, saying it doesn’t mean that it will disappear.
To CNBC, he said:
"I don't mean to dismiss it. Some smart people went into these and other cryptocurrencies. But it's a story that I think goes way beyond the merit of the idea. ... It is more psychological than something that could be explained by the computer science department."
Going against the grain
Shiller’s comments come as others are coming around to Bitcoin – even JP Morgan’s Jamie Dimon. He said earlier this year that he regretted dismissing the crypto as a fraud.
Other observers of the space, such as Fundstrat’s Tom Lee, remain bullish on it. He maintains a high price target for Bitcoin, forecasting it to reach $25,000 by the end of the year.
We also reported to you this week about some other key figures predicting Bitcoin’s price will move higher. This includes Blockchain Capital’s Spencer Bogart and Pantera Capital Management.
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