Economy
Related: About this forumNobel economics laureates warn about bitcoin
A day after Noble laureate Joseph Stiglitz said bitcoin should be outlawed, another winner of the economics prize said the digital currency will eventually repeat the U.S. stock market crash that preceded the great depression.
Robert J. Shiller, the Yale economist whose work covers the prediction of asset prices -- and the inefficiency of markets -- said the attraction of the currency was a narrative akin to a "mystery movie" that draws in people who want to outsmart the system.
"Bitcoin, its just absolutely exciting," Shiller said at a conference in Vilnius, Lithuania on Thursday. "Youre fast. Youre smart. Youve figured out nobody else understands. Youre with it. And bitcoin has this anti-government, anti-regulation feel. Its such a wonderful story. If it were only true."
Price swings in the worlds most popular digital currency are increasing amid speculation that bitcoins almost 1,000 percent gain this year may not continue. Bitcoin surpassed $11,000 in a matter of hours after reaching $10,000 on Wednesday. It then fell almost 20 percent before recovering.
I dont know where its going to stop," said Shiller, who won the Nobel Prize in Economic Sciences in 2013. "Its going to go way up, like the stock market in the 1920s. We will reach a 1929 eventually. But then it wont go to zero, it just will come down.
A day earlier, Stiglitz called bitcoin "a bubble" thats going to excite people as it rides up and then drops.
So it seems to me it ought to be outlawed, Stiglitz said Wednesday in a Bloomberg Television interview with Francine Lacqua and Tom Keene. It doesnt serve any socially useful function.
At: https://www.msn.com/en-us/money/markets/so-it-looks-like-nobel-economics-laureates-dont-like-bitcoin/ar-BBFY7wp
msongs
(67,395 posts)yodermon
(6,143 posts)without basically outlawing the internet, like, worldwide.