Nobel Prize Winner Thaler Says Cryptos Are Likely a Bubble, Soros Assures The Burst Won’t be Huge

Nobel Prize Winner Thaler Says Cryptos Are Likely a Bubble, Soros Assures The Burst Won’t be Huge

It is the time when pundits weigh in the cryptocurrency rage. Recently, the business magnate George Soros emphasized that he considers cyber money as a bubble. However, according to his words, when it bursts that will not have much effect on the financial system.

In the meantime, Richard Thaler, the economist who won the Nobel Prize in Economic Sciences last year, said that digital assets look more like a bubble. Famous for his achievements in the behavioral economics, Thaler admitted that he does not know when the bubble goes off.

Bubble That Will Sound Like a ‘Puff’

According to Bloomberg, George Soros, who got $1 billion wagering against the British pound almost thirty years ago, said that digital money is not capable of functioning. Their main disabling factor is their unsteady nature, Soros said. Being in Davos on the World Economic Forum, the business magnate explained that crypto coins could not lead to the global crisis as it happened after previous economic bubbles burst.

“Normally when you have a parabolic curve, eventually it has a very sharp break. But in this case, as long as you have dictatorships on the rise you will have a different ending, because the rulers in those countries will turn to Bitcoin to build a nest egg abroad,” said Soros.

Also, he added that cryptos are not likely to experience an indeed devastating crash, as they “have a rather flat top.”

On the other hand, Soros sounded quite supportive concerning the use of bitcoin’s core blockchain. He also said that his grantmaking network Open Society Foundations has been utilizing it to assist migrants in finding a connection with their relatives and guard their funds.

Bubble Or Not?

World-known economist Richard Thaler, in his turn, said that digital money preferably looks like a bubble. He made such a conclusion after paying particular attention to this phenomenon, announced he to the Portuguese media outlet ECO. Nevertheless, Thaler is not sure when exactly the crypto bubble will go off.

“There is a bubble in debt markets […] the market that to me most looks like a bubble is that of bitcoin and its sisters,” said Thaler.

Moreover, the expert stressed that the cyber money system is not functioning rationally. To prove his statement, Thaler referred to a case of Long Island Iced Tea, whose shared soared by more than 300% after the word “blockchain” was added to its name.

Interestingly, Thaler is not the only one who negatively spoke about cryptos. Among the others are Joseph Stiglitz and Robert Shiller, both Nobel Prize laureates.

Quick Look At All Crypto News And Events For November 2020
Were you too engrossed in trading left and right that you’d completely spaced on getting your monthly update of the latest events in the crypto...
Keep Up With October Crypto Events Checking Out This Quick Roundup
Top Crypto Market News Of October You Should Catch Up WithDo you think the world is turning more crypto-crazed day by day? There’s no limit to your...
A Collection Of Fresh Crypto News For Those Who Missed Out
The Major Roundup On The Latest Crypto News In The World The last month has been full of events and brought even more pressure on local...
What To Expect From A Cryptocurrency Market In 2020
Crypto market has always been a good target for speculation, shady schemes, and "bad guys". It's also very controversial, especially for financial...
Influence of Recent Cryptocurrency Boom: Does It Still Hurt?
Crypto Exchange Agrees With Reports Showing 51% Attack On Ethereum Classic Bitcoin is a decentralized digital currency (also known as...
Cryptocurrency Exchange Security Levels
The growing interest in cryptocurrencies has led to the emergence of a wide selection of both digital money and the sites where you can exchange one...
Belarusbank Considers Setting Up Crypto Exchange
Last year March Belarus introduced a decree by which it legalized cryptos and some activities related to them. This made Belarus a frontrunner in the...
Nasdaq CEO Believes Cryptos Have Place in Future in Economy
Almost two months ago Nasdaq’s representative Joseph Christinat confirmed the rumours that in 2019 the American stock exchange might launch BTC...
Report: Leaders of South Korean Crypto Exchange Komid Face Jail After Fraud
This week the Asian crypto-market has been rich in the news. Earlier it was reported that Japan finally approved Coincheck’s official status as cyber...
Crypto-Expert Brian Kelly Says 2019 Will Bring No Approval to BTC ETF
For the past year, various ETF-projects have been failing to receive the green light from American regulators. And despite the bullish ambitions of...