- Robert Shiller believes crypto is driven by social excitement.
- Shiller is concerned that a bubble is forming around markets like housing and crypto.
- Also, Shiller called the crypto source of value ambiguous.
Robert Shiller, a Nobel prize Economist and Yale Professor, recently shared his thoughts on cryptocurrency. Shiller called crypto a “very psychological market” that he believes creates a “wild west mentality”.
The economist shared these sentiments during a recent interview with CNBC’s Trading Nations. Shiller also noted that he has thought about buying bitcoin for ‘the experience’ and believes many investors have bought it for the thrill of the experience. Shiller noted,
That’s a very psychological market. It’s impressive technology but the ultimate source of value is so ambiguous that it has a lot to do with our narratives rather than reality.
As an expert in how emotions drive financial decisions, Shiller compared the rising crypto trend to the Roaring ‘20s. To clarify, the 1920s were an economic period notorious for being driven by social excitement. Of note, the period ended with an economic crash that historians now refer to as ‘The Great Depression.’
Several markets, including cryptocurrency, have been experiencing an upsurge since the start of the year. The upward trend has Shiller worried that a bubble might be forming around these markets. Apart from crypto, the Yale professor also expressed concern about the rising housing and stock markets.
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