A Nobel-prize winning economist has spoken out against bitcoin again, arguing that it won’t be a ‘permanent feature’ in the finance world.
Speaking at the World Economic Forum in Davos, Switzerland, Robert Shiller said that while the digital currency was a ‘really clever idea,’ he doesn’t believe it has a future in our lives. During a panel discussion on cryptocurrencies the Yale economist said:
I tend to think of bitcoin as an interesting experiment, it’s not a permanent feature of our lives. We’re over-emphasising bitcoin, we should broaden it out to blockchain, which will have other applications.
Shiller’s comments come at a time when there is increasing pressure for regulations to be applied to the market. China and South Korea’s governments have already taken steps to crackdown on the market amid heightened interest from investors. Last year, China banned the operation of domestic digital currency exchanges. From the end of January, traders in South Korea will need to have real-name bank accounts if they wish to continue trading cryptocurrencies as the country moves to ban anonymous accounts.
Others have also added their criticism toward bitcoin.
Stephen Poloz, the governor of the Bank of Canada, said at the World Economic Forum that trading in the cryptocurrency was similar to ‘gambling.’ Whereas, Cecilia Skingsley, deputy governor at the Swedish Central Bank, claims that bitcoin isn’t even a currency.
[Cryptocurrencies] don’t meet criteria to be called money: they don’t store value, they fluctuate, and they’re not at a stable rate of exchange.
This isn’t the first time that Shiller has spoken out against the number one digital currency. Back in the September, he was reported as saying that bitcoin’s rise resembled that of a bubble, and that what’s driving its price up is the story behind it. More recently, he said that despite how long bitcoin remains it’s likely to ‘totally collapse.’
Earlier this month, Shiller said to CNBC, that:
(Bitcoin) might totally collapse and be forgotten and I think that’s a good likely outcome but it could linger on for a good long time, it could be here in 100 years.