Yale professor Robert Shiller quaried Bitcoin’s worth, comparing it to the 17th century Tulip mania.
He went on to cite gold’s value as an example, and how it would not completely erode if we discount it as an investment.
“It has no worth 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.”
Bitcoin’s rapid rise in 2017 divided views and found both supporters and detractors arguing over its value, speculative nature and long-term potential. While there are those who believe Bitcoin represents the future of money, a lot of big names have also called it a scam, likely to crash and burn.
joining the latter ranks, shiller spoke about the Tulip mania, and stated that Bitcoin is likely to totally collapse and be forgotten, but it might take it a hundred years to get there:
“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 presently 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.”
Impressvely, this is not the first time Shiller has been critical of Bitcoin. Last year he commented on the digital currency’s rise, attributing it to the mystery factor behind its creator and the peoples’ frustration with the existing financial system and status quo.
With Bitcoin, supporters hope for a future where they are in complete control of their finances as opposed to centralized governmental bodies. However, critics such as JPMorgan CEO Jamie Dimon have repeatedly stated that such a future would not come to pass, since governments would not allow economic control to slip away.
At the moment, Bitcoin and the whole cryptocurrency market is struggling under the pressure of regulations and bans from countries such as China and South Korea, which represent major trading hubs.