Robert Shiller: Cryptocurrencies Are Failed Experiment
May 25, 2018
Nobel Prize winner for economics Robert Shiller has declared live on Bloomberg, cryptocurrencies are by far not the first experiment aimed at transforming global monetary system and cited to previous similar attempts taken centuries ago.
In 1827 inventor and musician Josiah Warner opened Cincinnati Time Store in the US. The idea was that each product was sold in working hours called “labor notes”.
In two years manufacturer from Wales Robert Owen also tried to use time for calculating price and decided to found the National Equitable Labour Exchange
The both experiments proved to be a complete failure just like the idea by economist John Pease Norton to create electric dollar almost 100 years later.
As to Shiller, similar concepts including cryptocurrencies are much like a mock rather than profound revolution in the financial sector:
“No one, outside of computer science departments, can explain how cryptocurrencies work. That mystery creates an aura of exclusivity, gives the new money glamour, and fills devotees with revolutionary zeal. None of this is new, and, as with past monetary innovations, a compelling story may not be enough”.
Note that in September last year Shiller called bitcoin the best example ever of a speculative bubble.