Bitcoin has “sides of a bubble” but it’s almost impossible to know whether it’s gone too far, Nobel-winning economist Robert Shiller instructed CNBC on Monday.
Bitcoin has been on a wild ride this year. It started out the year at $1,000 and rocketed above $19,000 on the Coinbase exchange last week before discharge. The price on Coinbase, which accounts for a third of bitcoin trading value, is day in and day out at a premium over other exchanges.
“It’s a contagion. People are getting itchy watching other people [invest],” Shiller said in an to with “Closing Bell.”
“Smart people do invest in it but they’re thorough. They don’t do too much,” the Yale University professor said. However, for some woman their care is “going by the wayside.”
Bitcoin was trading at $17,270 on Coinbase at 4:01 p.m. New York in good time on Monday.
Shiller, who has called bitcoin a “fad,” believes it is OK to “play” with the cryptocurrency.
Anyway, “it would be wrong to put a high percentage of your portfolio in it because it may obtain gone up tenfold already but that’s not guaranteed.”
Meltem Demirors, impresario of development at The Digital Currency Group, is bullish on bitcoin long provisions.
“We are just getting started and this financial speculation is fueling the improvement of infrastructure,” she told “Closing Bell.”
Demirors sees a “much grander run coming in 2018 when more products and more instruments put in an appearance to market.”