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Rosenberg Research and Associates
- Economist David Rosenberg told Bloomberg he thinks bitcoin is in a bubble and investors don’t understand how his offering works.
- “Everyone seems to think we’re going to hit that $ 21 million cap on supply constraint, but nothing in the protocol suggests that bitcoin’s supply can’t increase once we’ve hit that limit. “, according to the economist told me.
- Bitcoin hit an all-time high of $ 23,777 Thursday shortly after crossing $ 20,000 for the first time on Wednesday, registering a gain of 20%. Rosenberg said the chart looked “absolutely crazy right now.”
- Watch Live Bitcoin Trading Here.
Economist David Rosenberg told Bloomberg he believes bitcoin is in a bubble and investors don’t understand the dynamics of the cryptocurrency supply.
“You talk to most of the people who ask me to put money into Bitcoin, they can’t even tell you who the person developed it is or even how it’s actually mined,” the economist said. chief of Rosenberg Research. “It’s just a classic business, followed by the herd, extremely crowded. It’s in a huge bubble.”
Bitcoin hit a record high of $ 23,777 on Thursday shortly after crossing $ 20,000 for the first time on Wednesday, marking a 20% gain in the final day. The cryptocurrency is now up more than 200% since the start of the year, but Rosenberg said the chart looked “absolutely crazy right now.”
The Bitcoin rally comes as several institutional investors and fund managers place dizzying predictions for the coin. Guggenheim Director of Global Investments Scott Minerd said on Wednesday that bitcoin would hit $ 400,000 due to its scarcity and value relative to gold.
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Although Rosenberg raised his doubts about the scarcity of bitcoin and the thesis that only 21 million bitcoins can be mined.
“Everyone seems to think we’re going to hit that $ 21 million cap on supply constraint, but there is really nothing in the protocol that suggests that bitcoin’s supply cannot increase once. that we have reached that limit, ”the economist told me.
While investors know for sure the gold supply curve, Rosenberg said investors “just think they know” but don’t really know Bitcoin’s supply curve.
He added that the last time bitcoin behaved with such “speculative fervor,” it suffered huge disappointments in the months to come. Bitcoin bulls say the 2020 rally is different due to institutional flows.
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