After the biggest two-week drop since 2011, cryptocurrencies continue their post-futures-expiration comeback with Bitcoin testing $13,000…
And Ripple up 80% off its lows…
Once again some headlines from South Korea were full of contradiction as there are reports that both Bithumb & Korbit, the two largest cryptocurrency exchanges in South Korea, are disabling Kookmin Bank deposits and withdrawals. Instead, they will allow Shinhan Bank (second largest bank) deposits and withdrawals. That means, Shinhan Bank will process payments for traders, and implies there is no ban looming.
For now prices are rising once again but yet another establishment type – though to be fair, he is a little less biased than most – Nobel-prize winning economist Robert Shiller, predicts the cryptocurrency will either implode or drag on, and – as always – compares the rise of Bitcoin to the tulip craze in the 17th century.
“It has no value at all unless there is some common consensus that it has value,” Shiller, who is also Yale professor, told CNBC. The 2013 Nobel laureate in economics says while “other things like gold would at least have some value if people didn’t see it as an investment,” he doesn’t know “what to make of bitcoin ultimately.”
“It reminds me of the Tulip mania in Holland in the 1640s, and so the question is did that collapse? We still pay for tulips even now and sometimes they get expensive,” Shiller went on, referring to an economic bubble in the Netherlands in 1637, when after prices frantically grew the market suddenly fell apart.
“[Bitcoin] might totally collapse and be forgotten and I think that’s a likely outcome but it could linger on for a good long time, it could be here in 100 years,” Shiller said.
The economist has previously spoken of bitcoin on numerous occasions, calling it a “fad” and saying the “story” behind bitcoin drives enthusiasm for it. “A new form of money that… sounds extremely revolutionary and involves a very clever use of cryptography” has inspired interest among people.
Notably, Bitcoin’s slump this week has partially recovered to challenge $13,000, making it worth over 170 percent more than when Shiller made his previous bubble claims in early September, 2017.
Mike Novogratz remains extremely bullish, noting on Twitter that he has just finished 55 investor meetings in 6 days.
“I am very optimistic on the future of the Blockchain/Crypto space. Markets will trade up and down with events and sentiment shifts. regulators are coming which is a good thing. the revolution isn’t turning back. Long term bull.“
This post originally appeared on Zero Hedge