Nobel Prize Winner says bitcoin won’t last for a long term

Nobel Prize Winner says bitcoin won’t last for a long term

The great classical economics theoreticians are generally the biggest detractors of cryptocurrencies. This idea seems to be verified when reviewing statements issued by Robert Shiller, Nobel Prize Winning Economist, who was also listed by IDEAS “Research Paper in Economics” publications monitor in 2008 as among the 100 Most Influential Economists of the World.

Such is the importance of Mr. Shiller in the field of economics, especially in the area of analysis of assets prices, that his opinions have a very high level of credibility and respectability, being taken in many cases as ideas of great value, with few economists or enthusiasts willing to contradict him.

In declarations for the Nikkei Asian Review website, He noted that although “bitcoin could possibly last a hundred years (…) it is unlikely to do so”. The reason for this assertion is due to the lack of intrinsic value, the absence of additional use (such as gold that can be used in jewelry, electronics and aeronautics as well as the economy) and an absence of banking regulations that would give cryptos a certain level of stability as an exchange mechanism.

When comparing bitcoin with gold, gold clearly has an advantage according to Mr. Shiller’s point of view:

“Gold has maintained value for thousands of years (because it is) inherently and uniquely scarce and beautiful and useful for certain purposes, (but) bitcoin is none of these”

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In another order of ideas, during his statements, he spoke as an advocate for the need to increase the regulatory pressures of banking and governments on operations made with cryptocurrencies in order to reduce the possibilities of their use in fraudulent or illegal acts.

He also called on the authorities to rule on the volatility of prices to promote their stability:

“monetary authorities should express their opinions about the excited atmosphere in the speculative markets, urging calm”

When asked about the possibility of a recession or economic crisis, Shiller said that it was difficult to predict an exact moment of occurrence, although he assured that they happen periodically, which is why, instead of promoting alternatives to the current capitalist system and its foundations (something that in theory  was pursued by Bitcoin), the efforts of governments must be oriented towards the distribution of benefits from economic growth to the middle classes, remedying the excesses of capitalism.

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