Money, just as we know runs the world. It leaves an impression wherever it goes. With the revolution of cryptocurrency taking over the world and minds of the people, Rober Shiller has also been affected and leaves an indelible impression on his blog post recently on Monday.
As Rober Shiller calls Bitcoin [BTC] and its fellow cryptocurrencies a ‘New Haven’. He believes that this revolution in technology is a sham.
In one of his recent interview, he talks about how this behaviour towards cryptocurrency is more psychological than any reason out there. He traces back in time and compares the soaring economic revolution to the failed experiences and concludes that this will end up in the dumps as well.
He mentions big names like Karl Marx, Friedrich Engels, Robert Owen and his attempt to establish the National Equitable Labour Exchange in London. Owen’s failed experiment of ‘Time money’ instead of gold and silver as a standard of value, Josiah Warner’s Cincinnati Time Store in 1827, a store that sold merchandise in units of hours of work and again relying on ‘Labour notes’ aka paper money. The stored closed in 1830 which leads to another failed experiment.
The Economist says:
“It’s another faddish example of human behaviour, it’s glamorous. I don’t mean to dismiss it. Some smart people went into these, and other cryptocurrencies. But it’s a story that goes way beyond the merit of that idea. I don’t know for sure, but it strikes me that the reason why people are so excited about it, is more psychological than something that could be explained by the computer science department. A lot of people are kind of angry about politics if you noticed. So there is 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. They really like that. Its a great story for today’s markets.”
Robert Shiller is a Nobel-prize winning economist and a current professor at Yale. He was in the news for the warning about dot-com bubbles and housing. He is the author of Irrational Exuberance, a book on devolution and its speculation into mania.
“None of this is new, and, as with past monetary innovations, a seemingly compelling story may not be enough.”
Whilst, Shiller mentions previous failed monetary experiences during the time and human life, Bitcoin [BTC], the largest cryptocurrency has been on the market for over a decade now. Despite its fluctuated rise and fall in the market, it’s market capitalization has bloomed to $143 billion according to CoinMarketCap.