Since the launch of the modern world invention in global Fin Tech world, Bitcoin and other the digital asset has been striking the chord in the widespread attention of various prominent financial institution, central banks and imperial universities, now extended to the US Nobel economics prize winners.

Yes, we are talking about Robert Shiller, the well-known economist of the US, the economics professor at Yale University and Nobel prize winner calls Bitcoin as a ‘Speculative bubble and Epidemic of Enthusiasm’.

In a Bloomberg Television interview , the Nobel Prize winner thinks that bitcoin as a social movement. The social movement that is prompted by the rise of Bitcoin and other predominant crypto-assets are split along geographic boundaries in the United States.

He ponders “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.”

The Nobel Laureate also calls that the speculation matter as the immature market quite often lists 10 digit percentage gains and losses. At this juncture, cryptocurrency industry is going through a rough patch of time, tumbled below $6,500 levels from its all-time high at the $20k level. Currently, trading just shy above the $6,000 levels as it defends further dips to the $5,000 mark.

It is wise to note that the cryptocurrency market has witnessed downward pressure several times in the past, however, it still trades multiple times higher than before, such as, $2,476 (26 June 2017), $656 (26 June 2016), $242 (26 June 2015), and so on.

When analysts claiming that Bitcoin is a speculative bubble have regularly pointed to the 17th-century tulip bubble in the Netherlands as an example. Challenged by Bloomberg’s interviewers, Shiller stated that ‘tulips are still valued’ and that ‘there are some expensive tulips.’

He further says “it’s an epidemic of enthusiasm and a speculative bubble but that doesn’t mean it will slump to zero.”

While a regular point of reference for analysts, the tulip mania fails to convince most Bitcoin enthusiasts as a true parallel in history. It was based on an asset that dated before mankind and even though that society approached tulips differently throughout history, no one ever thought of it as a game changer.

Having mentioned that, we recall that Shiller has spoken about Bitcoin in the past as well, saying that it is another attempt at reinventing money and that no one can explain how cryptocurrencies work. Courtesy: Bloomberg, coinmarketcap

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