BITCOIN HISTORY

Sometimes, we elevate faith beyond objective truth. It is a central principle of religion and politics. When a belief replaces a financial reason, we call it speculation.

Do you believe when it comes to bitcoin and other crystals? Although I think block technologies are promising, I do not know if we should put Bitcoin and other virtual currencies as a new discovery of gold or silver deposit.

Professor Robert Shiller teaches economics in Yale and is an expert on bubbles and speculation. He says we should see exactly the story behind Bitcoin. He claims to have many similarities with the Wizard of Oz, who is actually a veiled satire about the insanity of the gold standard (the "Yellow Brick Road").

As one who has thoroughly analyzed dot.com and domestic bubbles and been awarded a Nobel Prize for Economics for his research, Shiller described Bitcoin's delusion as a bubble. He said that in early this year in quartz:

"I think it has something to do with the motivational quality of Bitcoin's story, and I think, what's so exciting, you have to think like the humanities, what's this Bitcoin story?

On the other hand, millions believe that Bitcoin will make them rich with little or no effort. After all, the reference price of the virtual currency has increased in recent months by more than 600%, although this month has been reduced compared to 50% of its maximum value.

Add to that the appeal of blockchain technology: the government does not control it, computers around the world monitor it, and it's embedded in a cryptic code that makes hacking difficult. This is the story, even if it has strange aspects.

Of course, Blockchain and Bitcoin and their many cousins ​​do not disappear. But its popularity will not hide the need for greater transparency. I will refrain from including them in your pension plan until you know more.

Then there is the underlying narrative. Every story has its ups and downs. Although I have no idea about the end of Bitcoin, keep in mind that all bubbles do not end well.