An American Nobel Laureate and professor of economics at Yale University, Robert Shiller, has made the claim that Bitcoin is “a social movement” and “an epidemic of enthusiasm.”
Split Popularity for Bitcoin in the US
Robert Shiller, economist, academic, and best-selling author, was speaking on Bloomberg Television yesterday when he made his comments concerning Bitcoin. He said:
The East Coast is less into it than the West Coast. Silicon Valley is really into it. This to me shows that this is not a rational response to new information.
This isn’t the first time that Shiller has spoken about the number one cryptocurrency. Back in January, he was reported as saying that it was an “interesting experiment.” He also claimed that it wouldn’t be a permanent feature in our lives. At the time, he said:
We’re over-emphasising bitcoin, we should broaden it out to blockchain, which will have other applications.
Shiller has also said that Bitcoin resembled a bubble. Mid-January, he argued that the cryptocurrency could “totally collapse,” but it may also linger for the next 100 years.
Social Movement Comes to Bitcoin
Speaking yesterday, Shiller was once again talking about Bitcoin. Now it seems as if he’s taking a different tune toward it. He said:
It’s a social movement. It’s an epidemic of enthusiasm. It is a speculative bubble. That doesn’t mean that it will go to zero.
His comments follow after the digital currency dropped below $6,000 over the weekend. Surpassing its previous 2018 low in February, the decline in price comes amid increasing scrutiny in the market from regulators. Additionally, hacks at South Korean crypto exchanges Bithumb and Coinrail this month have impacted industry prices.
Notably, in the past, Shiller has said that Bitcoin reminded him of the tulip mania in the 17th century. In his remarks yesterday, he was asked whether the crypto asset was comparable to the Dutch tulip bubble. Shiller’s response was:
Tulips are still valued, there are some expensive tulips.
Whether this is Shiller’s attempt to view Bitcoin in a more favorable light is not known. Considering his previous remarks, it does highlight a more positive outlook. The cryptocurrency has yet to reclaim previous highs, and it remains to be seen if it will.
A report from last Friday suggests that Bitcoin’s bad year is set to continue. Earlier this month, a crypto trader said the digital currency hadn’t hit bottom yet. With further bearish pressure expected on the market, it’s anyone’s guess where it’ll go to.
Do you think Bitcoin is a social movement? Let us know in the comments below.
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