Robert Shiller is one of the world’s top economist and one of only a few people who were able to predict in 2003 what would be happening in 2008 when it comes to the housing bubble that caused the big economic crisis in 2003. Robert Shiller is the Yale professor who won Nobel Prize for his contribution to the world of economics that we know today. Because of that, he is currently one of the biggest authorities in the world economics.
Consequently, all his statements and his predictions are taken seriously and he is taken very seriously among other economic experts. Recently, Robert Shiller gave an interview in which he talked about the global economics and the latest trends in different markets. At some point he was asked about whether he could draw a parallel between the bubble he saw in 2003 and the current global markets.
Bitcoin situation similar to housing bubble of 2003
It did not take him a long time to respond as he quickly stated that the current market of digital currencies and especially Bitcoin reminds him very much of the situation that he saw in 2003. He acknowledged that digital currencies are becoming more and more popular especially among the young people as he had the opportunity to see among his students. However, he is not convinced that there are true reasons to be that excited.
Looking at the data that is available, it can be seen that Bitcoin has gained more than 700 percent in value just during the past year and just a couple of days ago, the value of Bitcoin has hit the all time high when it breached the $5,000 mark. According to Shiller, Bitcoin is a bubble that has been encouraged by the narrative that is connected to the creation of this digital currency. In that regard, he mentioned Satoshi Nakamoto – a person (or a group) who created Bitcoin and introduced the blockchain technology. However, Satoshi Nakamoto is nowhere to be found and many wonder if he is actually a real person at all.
Shiller warning investors
In one of his books, Shiller talked about the digitalization and the fact that technology is taking over many aspects of human life. Digital currencies are just one example of that technology. In that book, he asserted that people are afraid of the technology and what the future will bring, but people seem not to be afraid of digital currencies and they welcome them wholeheartedly. According to Shiller, even though the market of digital currencies looks very good at this moment, there are signs that tell a different story.
Because of that, he warned all investors to be careful when it comes to investing in digital currencies, especially in Bitcoin. Robert Shiller is almost one hundred percent convinced that Bitcoin is a bubble and he warned that bubbles have to burst eventually. However, the big problem with that is the fact that nobody can predict when the bubble would burst. When that happens, markets and investors will be left in a state of total chaos and this could be seen from the crisis that happened in 2008 with the housing market.
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