Bitcoin bubble that will soon burst or on the contrary fly up? According to CNBC, Professor Yale University and Nobel laureate Robert Schiller called Bitcoin a bubble and warned investors that they are at the mercy of emotions.
Bitcoin bubble glamorous
He argues that cryptocurrencies are a thing of the past since they do not take root in the financial basis. “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. To me, it’s interesting as another example of faddish human behaviour. It’s glamorous,”
“It’s glamorous…Smart people went into these and other cryptocurrencies, but it’s a story that I think goes way beyond the merit of the idea”
Schiller – the famous bitcoin-bear, who is known for his work on the search for financial bubbles, says that the hype surrounding the decentralised, unregulated crypto-currency market comes partly from his image revolting against Sistema. “I think it’s partly political. Economists tend to neglect the political side. There’s a big element of people who don’t trust the government anymore, and they like the idea that this didn’t come from the government. It came from some really smart computer scientist. It’s a great story for today’s markets,” explained Robert Schiller.
Bitcoin as a world-changing technology
In contrast, techno billionaire Tim Draper has set a target price of bitcoins at $ 250,000 in 2022. He remarked, referring to a crowd of techno enthusiasts outside Drapery University.
“I’m thinking $250,000 a Bitcoin by 2022″
said Draper. “Believe it. They’re going to think you’re crazy but believe it. It’s happening, and it’s going to be awesome!”- he said. Draper also predicts that the blockade will destroy and transform the sphere of finance, health care and many other industries. “The blockchain is one of the most transformational technologies that has happened in the history of the world, and it is totally worth celebrating,” Draper told the Daily Journal before commencing work.
Maybe bitcoin is a bubble, but when will it burst? While so hotly debated and discussed, it can accurately state that Bitcoin is still interested in people at different levels. And we think it’s too early to talk about his death. Although over time, any technology becomes obsolete and replaced by a more developed one, it can take a long time to get to that point.