David Rosenberg, the President and Chief Economist of the Toronto-based Rosenberg Research criticized Bitcoin and called it a “massive bubble”. He added that gold is a better investment than Bitcoin.
In an interview with Bloomberg, Rosenberg said that there is a lot of misunderstanding regarding Bitcoin. He added that even people in the crypto community do not even know about the future supply of BTC.
The Founder of Rosenberg Research termed Bitcoin as an extremely “crowded trade” with no future. Despite the recent price rally, Rosenberg believes that the price will ultimately go down in the coming years.
“Bitcoin is a massive bubble. The one thing we know about gold, we know the supply curve of gold with certainty. We don’t know the future supply curve of BTC, people think they know but they don’t really know,” he said during an interview with Tom Keene.
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BTC has attracted institutional investors in recent months from major financial firms across the world and yesterday’s jump above $20,000 shows that there is optimism regarding the price of Bitcoin from institutional as well as retail investors.
Rosenberg joined the list of other economists like Nouriel Roubini, who called Bitcoin “mother of all bubbles.” Additionally, Roubini called BTC a “heavily manipulated” store of value.
“Bitcoin has no intrinsic fundamental value, use or utility or any other service. So, it is a pure speculative manipulated asset & bubble with no fundamental value. It is not even a hedge against other financial assets. Investing in BTC is equivalent to take your portfolio to a rigged illegal casino & gamble; at least in legit Las Vegas casinos, odds aren’t stacked against you as those gambling markets aren’t manipulated the way BTC is. Instead, BTC is manipulated heavily by Tether & whales,” Roubini said in a series of tweets last month.
Bitcoin received criticism from economists around the world in the past, but the price defied all predictions and jumped above $23,000 today.