Nobel Prize winner explains the irrational prosperity with Bitcoin as an example


nnnJudge Robert Shiller pointed out that Bitcoin is now the most suitable example of irrational exuberance. Because he is the authority to study the bubble market, its view of the prosperity of the digital money market participants should be inspired. But some people do not agree with their point of view, saying that his traditional method may be flawed, Bitcoin and other bubbles are not the same.n
nnTranslated by: Inan
nRobert Shiller, a professor of economics at Yale University, won the Nobel Prize for his research on the bubble. In his book entitled “Irrational Prosperity”, he explained the growing and rapidly collapsing market with Bitcoin as an example.n
nShiller’s identification tools play an important role in resolving the bubble market. He created a measure of real estate prices, stock market valuations and cyclically adjusted CAPE ratios.n
nShiller gave a straightforward answer when asked about a real-world example that represents an irrational boom or speculative bubble today: Bitcoin.n
nShiller said in a dialogue with the Quartz platform that it was the example of a bitcover that convinced him that the theory.n
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nThe prosperity of Bitcoinn
nShiller said he often heard people talking about Bitcoin in Yale and confirmed that it was really a bubble.n
nn”Now, the most obvious example of irrational exuberance is Bitcoin, and I think it’s related to the stimulus effect of Bitcoin, which I saw from Yale’s students, and when they talk about Bitcoin, they are excited. It is curious, what is the excitement that you have to think from the perspective of the humanities.n
nnn”It was created by Nakamoto, and nobody could find the man, which made the story mysterious, and he came up with a great idea about encryption, block chains and distributed books. , The government can not stop it, can not be regulated. It seems very suitable for the current age of this anxiety.n
nn”By the way, it is so right that people feel that they are given the right: I understand this thing! I can become rich! This seems to be able to alleviate people ‘s anxiety.n
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nMainstream speculationn
nShiller commented that the perception of things is the real starting point of the bubble, but he does not refer to the spread of knowledge through the Internet, but through the paper media.n
nShiller said:n
nn”This major event was not the emergence of the Internet, but the press that Gutenberg invented in the 14th century, it was not used until the 16th century, and people began to see the bubble.n
nnHowever, many people also believe that the mainstream of Bitcoin and its more mature forms of investment have benefited from the media attention. In addition, it is this popularity that makes digital money growing, rather than contributing to the bubble.n
nThe growth of Bitcoin is also unparalleled for most other bubbles, so some people think that these traditional methods proposed by Shiller may be flawed.n

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