In a recent interview with CNBC, Yale professor of economics and Nobel prize-winner Robert Shiller advocated that Bitcoin will eventually die out. Following the advice of investing guru Philip Fisher who famously said, “It is often easier to tell what will happen to the price of a stock than how much time will elapse before it happens”, Shiller said that it might take 100 years for the Bitcoin bubble to burst but it will most certainly burst.
Earlier he had a very harsh stance against Bitcoin and made cliched comparisons to Tulip Bubble. Now, Shiller has become a moderate supporter of Bitcoin and cryptocurrencies and acknowledges that it has certain advantages over nationalized monetary systems, however, he does view cryptocurrencies with a healthy amount of skepticism.
— Robert J Shiller (@RobertJShiller) May 21, 2018
Shiller now says that Bitcoin has enthusiasm among the young generation because of its narrative. He says, “They (investors) like the idea that this didn’t come from the government. It came from some real smart computer scientist. They like that. It’s a great story for today’s markets.”
In the most recent interview with CNBC which took place on 29th May 2018, he acknowledged that predicting anything about cryptocurrency is hard and most people will miss the mark. Shiller also admitted that his students at Yale have a zeal towards the new financial system that Bitcoin and other cryptocurrencies aim to create.
What Shiller is suggesting is what many within the crypto-community already believe. That cryptocurrencies in the present form won’t exist. There will be hard forks after hard forks, the technology will adapt to circumstances in the future making it very distinct from what the cryptocurrency market is right now. He says, “(In the future) It will have a different name if it exists…it will be a matter of dispute whether it exists or not.” Even though he goes on to concede that there are 1000s of cryptocurrencies now and something good might come out of this.
What Shiller and other economists fail to see is the value created by cryptocurrencies, rather they view it only as a sort of bubble. Since there is a demand for decentralized monetary systems, there is going to be a supply, especially when the present technology is already capable enough of providing it.