Economist David Rosenberg told Bloomberg that he had the idea of bitcoin in a bubble and that investors did not perceive the dynamics of cryptocurrency supply.
“You communicate to the fullest with other people who ask me to put cash in Bitcoin, who can’t even tell you who the user who developed it or even how it’s exploited,” Rosenberg Research’s leading economist said. “It’s just an old business, followed through the herd, incredibly crowded. It’s in a massive bubble. ” Bitcoin reached a record $23777 on Thursday in a time after surpassing $20,000 for the first time on Wednesday, marking a 20% gain from the last day. The cryptocurrency has now risen more than 200% since the beginning of the year, but Rosenberg said the chart seemed “absolutely crazy right now. “
Bitcoin’s uptick occurs when several institutional investors and fund managers make dizzying predictions for the currency. On Wednesday, Guggenheim’s director of global investments Scott Minerd said Bitcoin would succeed at $400,000 due to its shortage and price relative to gold.
Although Rosenberg raised doubts about the shortage of bitcoins and the thesis that 21 million bitcoins can be extracted.
“It all turns out that we will succeed at this $ 21 million cap on source restriction, yet there is actually nothing in the protocol to suggest that bitcoin source cannot be accumulated once we achieve that cap. “. the economist told me.
While investors are in fact aware of the gold source curve, Rosenberg said investors “just think they know” but don’t know the Bitcoin source curve. He added that the last time Bitcoin behaved with such “speculative fervor” it suffered huge disappointments in bitcoin bullish say the 2020 rally is another due to institutional flows.
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