Will Bitcoin "take off" again? Nobel Prize winner in economics Robert Shiller thinks it's possible

Nobel Prize-winning economist Robert Shiller told CNBC television viewers that Bitcoin could “explode” again, but it could also “take off” again.

During a televised debate with host Brian Kelly, the renowned bubble “expert” appeared to moderate his previous comments that Bitcoin is the “perfect example of a bubble.”

He commented:

“I don’t mean to disparage the innovation and the technology that is Bitcoin… but it seems to me that the enthusiasm for Bitcoin is a little bit out of proportion.”

“Maybe in the future, there will be some great applications for these cryptocurrencies.”

As Bitcoin hits $5,000, a five-fold increase since the start of the year, Shiller becomes the latest prominent traditional finance figure to voice criticism of the currency’s growth.

China’s regulatory storm on ICOs caused a temporary drop in the price of Bitcoin, which once fell below $4,000, but quickly rebounded by more than 50% within a few days.

In a conversation with Kelly, a well-known Bitcoin bull, the Yale professor reiterated his theory that Bitcoin is only popular because of its "story," including its mysterious founder Satoshi Nakamoto.

He hypothesized that:

“The quality of the story attracted everyone’s interest.”

Kelly countered that Bitcoin’s return on investment is the source of its appeal, and that Bitcoin itself promises too much, regardless of how it will be implemented in the future.”

“In the worst-case scenario, if Bitcoin becomes digital gold and reaches just 5% of gold’s market cap, that would imply a price of $25,000.”

“So for me, on a risk-reward basis, I’ll take the risk-reward.”

Last month, during a bitcoin price swing sparked by Bitcoin Cash, Kelly told CNBC viewers to buy bitcoin, predicting at the time that it would bottom out at $3,600.