Nobel Laureate: Bitcoin is the best example of bubble

In a recent interview to Quartz, the Nobel-winning economist Robert Shiller told that currently, the best example is Bitcoin. He recalled his Yale students’ sentiment about this cryptocurrency and expressed confidence that it is overrated.

He even outlined the primary reason of this current hype that led to highest Bitcoin prices the market has seen. The humanity is now facing digital innovations it fears it cannot fully control. Bitcoin at least partly gives the owner a sense of being fully in touch with innovations and “empowerment”. Now it’s not just vague terms in tech journals, it’s an opportunity of becoming rich. When someone (Satoshi Nakamoto is still anonymous) invents a new idea, a new story, it serves as a driving force for the speculative bubble. One might assume that other cryptocurrencies use partly use this narrative as well.

He is, however, not sure that Bitcoin is the biggest bubble right now, but immediately told his opinion on Donald Trump’s winning reasons and how the hype around the current President of the United States can be viewed as a speculative bubble and a driving force for other bubbles.

It’s better to remind here that the academic study he won the Nobel prize for was about economic bubbles, so it’s natural that the whole interview was focused on this theme.