In an interview with Bloomberg TV, Robert Shiller, a prominent economist, Yale University economics professor and Nobel economics prize winner Robert Shiller said that Bitcoin [BTC] is a generational and geographic phenomenon.
During the interview, Shiller demarcated the geographic borders between those who are “into it” and those who are not. 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.”
He stated that it was a speculative bubble, as he has many times in the past, and that the price is driven by “investor excitement at the possibility of getting rich”. He also stated that Bitcoin is receiving undue attention towards it due to the phenomenon being a bubble.
However, he did say that it was a “remarkable social phenomenon” and that computer engineers are coming up with new applications in cryptographic functions. He stated:
“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.”
In the past, Shiller has called Bitcoin a financial failure, an example of faddish human behavior and has said that it will vanish in the next 100 years. He said:
““It’s another faddish example of human behaviour, it’s glamorous. I don’t mean to dismiss it. Some smart people went into these, and other cryptocurrencies. But it’s a story that goes way beyond the merit of that idea. I don’t know for sure, but it strikes me that the reason why people are so excited about it, is more psychological than something that could be explained by the computer science department.”
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