A Yale University professor and Nobel Prize-winning economist Robert Shiller called Bitcoin a bubble and warned investors from being swayed by emotions, because cryptocurrencies are passing fancy not rooted in financial fundamentals.
"I'm interested in Bitcoin (Bitcoin) as a sort of bubble. It doesn't mean that it will disappear, that it'll burst forever. It may be with us for a while. To me, it's interesting as another example of faddish human behaviour. It's glamorous,” Robert Shiller admitted.
“It’s glamorous…Smart people went into these and other cryptocurrencies, but it’s a story that I think goes way beyond the merit of the idea,” he added.
Shiller is a well-known Bitcoin bear who’s famous for his work on spotting financial bubbles, says the hype surrounding the decentralized, unregulated cryptocurrency market stems partly from its image as rebelling against “The System.”
“I think it’s partly political. Economists tend to neglect the political side. There’s a big element of people who don’t trust the government anymore, and they like the idea that this didn’t come from the government. It came from some real smart computer scientist. It’s a great story for today’s markets,” Robert Shiller explained.
At the same time tech billionaire Tim Draper has set a $250,000 Bitcoin price target for 2022. He made the remark, speaking to a crowd of tech enthusiasts outside Draper University.
“I’m thinking $250,000 a Bitcoin by 2022,” Draper said. “Believe it. They’re going to think you’re crazy, but believe it. It’s happening and it’s going to be awesome!” he said.
Draper also predicts that blockchain will disrupt and transform finance, healthcare, and many other industries. “The blockchain is one of the most transformational technologies that has happened in the history of the world, and it is totally worth celebrating,” Draper told local news media outlet the Daily Journal prior to the start.
Meanwhile, Bitcoin is inching back up after it slumped 52% in the first quarter. Its price has surged above $8,000 on Frinday. The largest and most popular cryptocurrency has gained 17,68% over the past 24 hour hours and is currently trading at roughly $8,077, according to Insider.pro’s Bitcoin chart.
By Jade Olafson