Canadian economist calls bitcoin a bubble amid new price high

Bitcoin is a „huge bubble“ and is inferior to gold as an investment asset. This opinion was expressed by the founder of the Toronto-based consulting firm Rosenberg Research in an interview with Bloomberg.

According to David Rosenberg, there are many misconceptions about the first cryptocurrency. He added that even members of the community do not know about the future of bitcoin offerings.

Rosenberg, who holds the positions of president, chief economist Bitcoin Trader platform and strategist at his company, believes that the cryptocurrency market has no future and is extremely crowded with speculators. Despite the recent rise in the price, the economist is confident that quotations will eventually go down.

„Bitcoin is a huge bubble. We know the gold supply curve with certainty, but we don’t know it for the cryptocurrency in the future. People think it is known, but in reality it is not,“ he stated.

The price of the first cryptocurrency updated an all-time high at levels above $23,000 the day before. This came amid an influx of funds from institutional investors who see bitcoin as insurance against inflation.

Earlier on the Rosenberg Research podcast, Jeffrey Gundlach, head of management company DoubleLine Capital, expressed this view on the leading cryptocurrency.

Recall that in September, the number of bitcoins mined exceeded the 18.5 million mark and the amount of future issuance was less than 2.5 million coins. According to the algorithm, the mining of all 21 million bitcoins should end in 2140.

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