Topic: Crypto is more like “a psychological experiment than a serious investment" - page 6. (Read 630 times)

investment is another word for experiment. we tend to gamble with the outcome of putting money on bitcoin, it will definitely not going to be a bubble as long as bitcoin can be converted into cash which can be use to purchase online, having millions worth of money invested on bitcoin seems serious to me, having users around the world seems serious to me, the fact is, bitcoin today is not just an investments, but a potential financial power of an individual users with freedom on how to spend it and when to earn more from it.

He's probably trying to say that Bitcoin is only a figment of one's imagination, making it psychological. I don't see where he gets it from and what makes him think that Bitcoin has no application in computer science, but it's obvious that he lacks knowledge about bitcoin. Many even suggest that it's the other way around and that bitcoin has nothing to do with economics but is more technological because it involves coding. Before making such statements, he should do his homework first.

I think all cryptocurrency investment has a strong tie to psychology. The price of bitcoin is based on what we believe the price should be based on how it's being bought and sold. There's nothing holding its value; it's mainly just held down by the opinions of multiple investors. With that, we see a lot of backlash saying that since bitcoin doesn't really have a backing, it shouldn't have a value. However, this is not true. The value comes solely from what people think the value should be and that's what makes Bitcoin so unique. Without that concept, there would be no cryptocurrency markets anyway, and seeing as Bitcoin is valued at over 7,900 USD currently, I think there is a strong argument FOR bitcoin.

Tulips had absolutely no technology backing them. They were not a useful mode of payment. Bitcoin just not comparable to the tulip mania, as much as people want to make comparisons here.

Bitcoin will not disappear, as long as people are using the network, Bitcoin will exist.

The pumps last year may have been a speculative bubble, but that doesn't mean that bitcoin itself is a psychological experiment. It's a currency.

Bitcoin's value comes from the fact that you need to use it to transact on the bitcoin network. It is a long term store of value, it is decentralised, it is disinflationary unlike fiat currencies. Like Hydrogen mentioned, he is completely ignoring the economic benefits that bitcoin brings to the table. Instead, he is treating it as if it was merely an investment scheme, which it is not.

I do believe that bitcoin will not be with us for awhile but it's here to stay.
The true value of bitcoin depends on how big is the current market cap. The true value of bitcoin now for everyone is its worth isn't just a cryptocurrency but it's more of an asset now.
And about Robert Shiller, I guess he knows many things about bitcoin but he's giving his thought for his own interest just like what Dimon did.

I barely disagree to the part where sir Robert Shiller said that cryptocurrency is more like a "psychology experiment", I think that is not an appropriate term. He was able to say those things maybe because crypto's ups and downs of price in the market  greatly affect our behavior as a person. Well, that's true and pretty obvious; panic seller is one of the good example. But technically speaking, crypto is definitely a serious investment and not directly related with psychological stuffs.

Bolded: it sounds like Robert Shiller is claiming blockchain has no real world application in computer science, security, finance or otherwise legitimate software engineering fields. Almost as if Shiller doesn't realize shipping firms and many others are utilizing blockchain technology in ledgers and banks are being forced to rollout faster transactions with lower fees to better compete with bitcoin, after decades of industry wide stagnation. Perhaps this serves as a real world example why armchair economists should not comment on things they do not understand or have experience with.  

It also sounds like Shiller is claiming neither bitcoin nor crypto currencies have anything of value to offer the world. As an economist he should appreciate the thought experiment bitcoin and crypto currencies offer in terms of decentralization, deflation, limited supply, algorithmically limited production of assets and other interesting and thought provoking discussions which bitcoin brings to the table.

Lastly, Shiller should appreciate the high growth of bitcoin/crypto users worldwide. Robinhood trading platform gained near to 1 million new sign ups after announcing crypto currency support.

Bitcoin could offer a safe haven for consumer wealth in the event of a worst case scenario where the dollar or euro default. They also offer financial services to many poor demographics who could not afford a bank account or platform which allows them to electronically execute transactions or transfer money.

 Shiller sound more like a youtuber who attacked bitcoin only because they were paid to than he does someone speaking as an objective and independent economist here. The same might be said of Paul Krugman and many other economists who have commented on bitcoin.

He's literally grasping at one event, of the 2017 bull market. Obviously, after such huge surges in price, a bear market was bound to kick in and prices could not have been sustainable at such high levels. The crypto bull market was definitely fueled by fomo buying, as with any investment, even stocks. But bitcoin itself is not a "psychological experiment".

Its value comes from the fact that it is decentralized, and that nobody can manipulate with the supply, unlike fiat currencies.

I just simply don't see how a comparison of tulips to bitcoin is fair, when bitcoin is a practical currency that has already benefited a lot of people because of its convenience of sending money, and also as a store of value. Bitcoin is a serious investment, you'd be proven wrong if you think otherwise with time.

I wouldn't be surprise such statement coming from a economist. We all know that they hate bitcoin and for them, anything that defies economic law is pure garbage and will not take off. However, crypto has been in existing for almost a decade now so I disagree with him that this is just a experiment. More people have been investing on it, yeah its a speculative assets but I'm sure that it has been a good investment instrument for most of us specially in the last 2 years or so.

Do you know why most of the time educated man is physically and mentally absence in reality? Because they have a world of its own. This is why most of the time they’re outdated and technologically ignorance. They’re mostly using book rather than ebooks or computers. Not all, but most of them.

If this man is my professor I would rather home study than hearing lectures that is in old fashion.

I hate those who give an expert opinion on things they don’t know or close minded because of self interest. Most probably he invested in stock market and find bitcoin as a threat.

Yes investing in crypto market involves a psychological aspect also. But it’s wrong to address crypto only as a psychological experiment. It’s much more than that. I think crypto is definitely a serious investment because it needs a lot of experience and exposure to the market to trade profitably. Only experimenting with it will not yield favorable results. On the hand how much profit a trader can earn depends on the psychology of the investor like how he responds to the losses, etc.

Robert Shiller, professor of economics at Yale University and co-founder of the Case-Shiller Index, expressed his idea about cryptocurrency.

"I'm interested in bitcoin as a sort of bubble. It doesn't mean that it will disappear, that it'll burst forever. It may be with us for a while," said Shiller.

"To me, it's interesting as another example of faddish human behavior. It's glamorous," he added. The bitcoin craze reminds him of tulip mania in the 17th century, the event which is considered one of the first recorded speculative bubbles where a buying frenzy and lofty expectations replace rational justifications for an item's value.

The price of bitcoin grew so fast. The cryptocurrency hurtled above $1,000 in early 2017 after trading at less than a $1 at the beginning of the decade. It even hit an all-time high north of $20,000 in mid-December. (recommend FuninUSA for updated data about cryptocurrency)

A lot of people have benefited from the cryptocurrency investment. But Shiller would still like to see it as a psychology experiment. “It is more psychological than something that could be explained by the computer science department,” He said.

Bitcoin held above $8,000 on Friday morning after topping that level a day earlier. The two-day rally comes after a weak start to April likely tied to tax-related selling. Prices dipped below $7,000 earlier this month.

Will the bitcoin disappear? What's the true value of bitcoin? What essence in bitcoin are we paying for?