Bitcoin is a ‘huge bubble’ and, as an investment asset, lags gold. This view was voiced by the founder of the Toronto-based consulting firm Rosenberg Research in an interview with Bloomberg.
According to David Rosenberg, there are many false notions regarding the first cryptocurrency. He added that even members of the Bitcoin community do not know Bitcoin’s future supply.
The president, chief economist and strategist at his firm, Rosenberg argues that the cryptocurrency market has no future and is extremely crowded with speculators. Despite the recent price rise, the economist is confident that prices will eventually head lower.
“Bitcoin is a huge bubble. We know the gold supply curve with certainty, but we do not know it for cryptocurrencies in the future. People think it is known, but in reality it is not,” he said.
Bitcoin’s price on the eve of reached an all-time high at levels above $23,000. This occurred amid inflows of funds from institutional investors, who see Bitcoin as a hedge against inflation.
Earlier in a Rosenberg Research podcast, stated the view on the leading cryptocurrency by DoubleLine Capital CEO Jeffrey Gundlach.
In September, the number of mined Bitcoins surpassed the 18.5 million mark, and the amount of future issuance stood at less than 2.5 million coins. According to the algorithm, mining of all 21 million Bitcoins is scheduled to end in 2140.
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