Robert Shiller has presented mixed signals about Bitcoin after he called it “the best example of a bubble.”
Nobel prize-winning economist Robert Shiller has told CNBC viewers Bitcoin might -ldquo;burst-rdquo; again but could also -ldquo;take off again.-rdquo;
Speaking in a televised debate with host Brian Kelly, the well-known bubble -lsquo;specialist-rsquo; appeared to soften his previous comments that Bitcoin was the -ldquo;best example of a bubble.-rdquo;
-ldquo;I don-rsquo;t mean to demean the innovation and the technology-hellip; but it seems to me the enthusiasm for Bitcoin is a little bit out of proportion,-rdquo; he commented.
-ldquo;Maybe in the future, there will be some great application of (these) cryptocurrencies.-rdquo;
-mdash; CNBC's Fast Money (@CNBCFastMoney) September 6, 2017
Shiller is the latest high-profile traditional finance figure to come out in skepticism of Bitcoin-rsquo;s growth as prices circle $5,000, up four times since the start of the year.
ICO regulatory turmoil in China produced only temporary backtracking, with prices dipping to $4,000 before rebounding over 50 percent within days.
Speaking to famously bullish Kelly, the Yale professor reiterated his theory that Bitcoin-rsquo;s popularity was nonetheless due to its -ldquo;story,-rdquo; including the -ldquo;mysterious-rdquo; nature of its creator Satoshi Nakamoto.
-ldquo;It-rsquo;s the quality of the story that-rsquo;s attracting all this interest,-rdquo; he hypothesized.
Kelly retorted that as a source of return on investment, Bitcoin held too much promise to overlook, regardless of its future implementations.
-ldquo;Worst case scenario, if all it ever becomes is digital gold and it can only capture five percent of gold-rsquo;s market cap, then Bitcoin-rsquo;s price will be $25,000,-rdquo; he said to Shiller.
-ldquo;So for me, on a risk-reward basis, I-rsquo;ll take that risk-reward -hellip; all day long.-rdquo;
Last month during a spate of volatility caused by Bitcoin Cash, Kelly told CNBC viewers to buy Bitcoin at what he predicted was a -ldquo;floor-rdquo; of $3,600.