Nobel Prize Winner Shiller Says Bitcoin is a ‘Clever Idea’

Nobel Prize Winner Shiller Says Bitcoin is a ‘Clever Idea’

The American Nobel Laureate and Sterling Professor of Economics at Ivy League Yale University Robert Shiller considers bitcoin as an exciting experiment as well as a clever idea. However, in his view, people pay too much attention to it.

Such an opinion he expressed in Davos at the World Economic Forum on January 25, during a special session, dedicated to crypto bubble.

As CNBC reports, Shiller acknowledged that bitcoin has become very popular nowadays as a currency, but he also stressed that the fact that BTC is volatile is a disturbance.

"I tend to think of bitcoin as an experiment. It is an interesting experiment, but it's not a permanent feature of our lives. We are over-emphasizing bitcoin, we should broaden it out to blockchain," said Nobel Prize winner.

Shiller stressed that it is a good idea to run to blockchain as it can be applied in various spheres of life, not only on the crypto market.

Bitcoin is Cool, But Not That Much

Interestingly, the world known economist likened digital coins to other efforts in substituting fiat money. For instance, Shiller mentioned the Unidad de Fomento. This one is a unit of account used in Chile. It is continually adapted for the inflation. Hence, its value will always remain stable even during low inflation. So Shillet said that BTC is this kind of one more indeed ‘clever idea.’

Nevertheless, the Nobel Prize Laureate added that people should consider imitating Unidad de Fomento rather than piling into cryptos.

BTC Futures Contracts Adoption – Way to Stability

The economist also addressed the issue of bitcoin-based futures contracts when talking in Davos. Notably, he said he was shocked that even though investors are able to short BTC, it is tough for them to achieve that.

By the way, that is the way that traders employ to vend an asset beforehand. They do this before obtaining the asset at a moderate price so as to gain earnings. This is called shorting, about which Shiller was talking.

As the economist explained, according to the theoretical knowledge in the financial sphere, if any product cannot be shorted, it means that it can accede to devotees. Therefore, skeptics will not be able to “vet against” respectively.

The professor also added that the fact that several exchanges, including Cboe and CME, launched BTC-based futures is the good news for this cryptocurrency. This way, according to his words, bitcoin might become less unstable.

As it is known, two large exchanges started trading BTC futures contracts a few months ago, in December 2017.