Robert Shiller said in his interview that bitcoin will “totally collapse”, and that the current crypto- craze reminds him of the “tulip mania” that once occurred centuries ago in the Netherlands.
The Nobel Prize winner remarked that bubbles are to be found everywhere, not just in bitcoin, adding that he “doesn’t know what to make of bitcoin ultimately.”
“It has no value at all unless there is some common consensus that it has value. Other things like gold would at least have some value if people didn’t see it as an investment,” said Shiller.
“It reminds me of the Tulip mania in Holland in the 1640s, and so the question is did that collapse? We still pay for tulips even now and sometimes they get expensive. (Bitcoin) might totally collapse and be forgotten and I think that’s a good likely outcome but it could linger on for a good long time, it could be here in 100 years.”
Many economists have likened the current bitcoin situation with the tulip bubble. The tulip price in 17th century Netherlands saw incredible heights, which then resulted in a market crash in 1637.
Shiller, who won his Nobel Prize for his work on asset prices and inefficient markets, made these statements before the huge sell-off bitcoin and the other cryptocurrencies experienced at the beginning of this week.
The Yale University professor is one of many that do not see a positive outcome concerning bitcoin. Jamie Dimon, CEO of J.P. Morgan, called it a fraud and Berkshire Hathaway CEO Warren Buffett foresees a bad ending for the cryptocurrency.
Bitcoin has just as much chances of facing total collapse as it has of catching a 100- year old reign. Analysts from both the financial and crypto fields can only speculate what the future of this coin will be.