37 lines
2.4 KiB
Markdown
37 lines
2.4 KiB
Markdown
# Crypto assets are a bubble
|
||
Crypto assets have the characterstic price behaviour that resembles many other [bubbles](../concepts/bubble.md) and [market manias](../concepts/madness-crowds.md) throughout history. Bitcoin has been characterised as a [speculative](../concepts/speculation.md) bubble by eight winners of the Nobel Prize in economics.
|
||
|
||
* Paul Krugman
|
||
* Robert J. Shiller
|
||
* Joseph Stiglitz
|
||
* Richard Thaler
|
||
* James Heckman
|
||
* Thomas Sargent
|
||
* Angus Deaton
|
||
* Oliver Hart
|
||
|
||
And by central bank officials:
|
||
|
||
* Alan Greenspan
|
||
* Agustín Carstens
|
||
* Vítor Constâncio
|
||
* Nout Wellink
|
||
* Mark Carney
|
||
|
||
And several notable investors have also described it as a bubble:
|
||
|
||
* Warren Buffet
|
||
* George Soros
|
||
|
||
## References
|
||
1. Chancellor, Edward. 1999. ‘Devil Take the Hindmost: A History of Financial Speculation’.
|
||
1. Blanchard, Olivier J, and Mark W Watson. 1982. ‘Bubbles, Rational Expectations and Financial Markets’. NBER Working Paper, no. w0945.
|
||
1. Bernstein, William J. 2021. The Delusions of Crowds: Why People Go Mad in Groups. Grove Press.
|
||
1. Demmler, Michael, and Amilcar Orlian Fernández Domínguez. 2021. ‘Bitcoin and the South Sea Company: A Comparative Analysis’. Revista Finanzas y Política Económica 13 (1): 197–224.
|
||
1. Baur, Dirk G., and Thomas Dimpfl. 2021. ‘The Volatility of Bitcoin and Its Role as a Medium of Exchange and a Store of Value’. Empirical Economics 61 (5): 2663–83. https://doi.org/10.1007/s00181-020-01990-5.
|
||
1. Caferra, Rocco, Gabriele Tedeschi, and Andrea Morone. 2021. ‘Bitcoin: Bubble That Bursts or Gold That Glitters?’ Economics Letters 205: 109942. https://doi.org/10.1016/j.econlet.2021.109942.
|
||
1. Mackay, Charles. 2012. Extraordinary Popular Delusions and the Madness of Crowds. Simon and Schuster.
|
||
1. Nabilou, Hossein, and André Prüm. 2019. ‘Ignorance, Debt, and Cryptocurrencies: The Old and the New in the Law and Economics of Concurrent Currencies’. Journal of Financial Regulation 5 (1): 29–63. https://doi.org/10.1093/jfr/fjz002.
|
||
1. Smales, L. A. 2022. ‘Investor Attention in Cryptocurrency Markets’. International Review of Financial Analysis 79: 101972. https://doi.org/10.1016/j.irfa.2021.101972.
|
||
1. Kolchinski, Alex. 2022. ‘Crypto Is an Unproductive Bubble’. Alex Kolchinski (blog). 18 March 2022. https://alexkolchinski.com/2022/03/18/crypto-is-an-unproductive-bubble/.
|
||
1. Krugman, Paul. 2021. ‘The Brutal Truth About Bitcoin’. The New York Times 21. |