Bitcoin Predictions - Robert Shiller Says Bitcoin is Likely to Collapse
As the volatility of the bitcoin keeps on increasing, a series of new predictions about its future are being made. The latest predictions indicate that bitcoin will eventually collapse, no matter how much time it will stay on the market. This prediction was made by Robert Shiller in a recent interview with CNBC.
Shiller is a Nobel prize laurate and a Yale University professor of economics. Shiller said that bitcoin will mostly likely "totally collapse" and compared the cryptocurrency with the so called "tulip mania" that happened in the Netherlands centuries ago. Then, the price of the tulip increased in a spectacular manner in this country.
Bitcoin has the value people give it
Shiller said that bubbles are common nowadays, and not only when it comes to bitcoin. During his interview, Shiller referred to the fact that bitcoin is quite an interesting subject because it has value only if people believe it is valuable. He said:
“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. 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.”
This is not the first time when someone compares the tulip mania to bitcoin. Some economists have done this in the past, as well. Furthermore, many banks from all around the world have expressed disbelief in the cryptocurrency's ability to function as a payment form. In fact, at one point, the CEO of JP Morgan actually called the digital currency a fraud.
