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.
“They all turn out that we will succeed in this $21 million maximum limit on source restriction, however, there is really nothing in the protocol to suggest that the bitcoin source cannot accumulate once we reach that limit. “the economist told me.
While investors are in fact aware of the gold’s origin curve, Rosenberg said investors “just think they know” but don’t know Bitcoin’s origin 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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