Economist David Rosenberg has asserted “ignorance about bitcoin” after saying that the cryptocurrency is in a massive bubble. He admitted that Bitcoin exceeded his expectations, but he still prefers gold because he understands it much better than Bitcoin.
“Bitcoin has exceeded almost all expectations”
David Rosenberg, chief economist and strategist at Rosenberg Research, admitted on Thursday at Trading Nation that Bitcoin had exceeded expectations.
His admission came after he said in December that Bitcoin was “in a massive bubble”. The economist told Bloomberg at the time that BTC was “just a classic, herd-following, extremely crowded trade”. In addition, he made the easily refutable claim that the Bitcoin code did not limit supply to 21 million coins, believing that “there is really nothing in the protocol to suggest that the supply of Bitcoin is not increasing can as soon as we have reached this limit. “
When asked on Thursday how he sees playing for Bitcoin in 2021, Rosenberg said:
I am only going to plead ignorance about Bitcoin. I just understand gold a lot better.
He compared Bitcoin to gold. “I was very optimistic about gold,” he noted. “The only thing I know about gold is that it has one-fifth the volatility of Bitcoin.” The economist reiterated his preference for gold over Bitcoin, but conceded:
I think Bitcoin exceeded almost all expectations, maybe not all, certainly mine.
Looking at the Bitcoin chart, Rosenberg was also asked if he viewed Bitcoin as “the biggest bubble right now”. He answered:
I would say there are some other soaring stocks in the S&P 500 that could rival it, but I’d say yes … all you had to do was take a look at the bitcoin chart for the past few months and it looks parabolic.
He pointed out that dotcom stocks can be overlaid on the bitcoin chart of the past few months, and concluded, “I’m not going to say that it will fall like dotcom stocks, but rather parabolic movement in Bitcoin In like this in a short time I would say that any security is highly abnormal. “
Even so, Rosenberg said that for investors who “want to get rich quick” and “can endure the volatility, I’m not going to tell you not to buy bitcoin.”
Do you agree with David Rosenberg on Bitcoin? Let us know in the comments below.
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