David Rosenberg: Bitcoin is ‚a huge bubble‘, its supply is not predictable

The president of Rosenberg Research said Bitcoin’s supply, fixed at 21 million coins, is „less predictable“ than that of gold

 

The rising price of Bitcoin (BTC) has led many experts to express their views on it. Although many have highlighted its bullish prospects, some still doubt that crypto is a new form of store of value. David Rosenberg, Chief Economist and Strategist as well as President of Rosenberg Research & Associates, recently described the gold supply as more predictable than that of Bitcoin.

 

In an interview with Bloomberg on Thursday, Rosenberg said:

 

„Everyone seems to believe that we’re going to reach that 21 million coin cap, but there’s really nothing in the protocol that suggests Bitcoin’s supply can’t go up further once it reaches that limit.“

 

The fixed supply of 21 million coins is one of Bitcoin’s most interesting features, as well as one of its greatest strengths as a store of value: there is a steady influx of BTC entering circulation on a regular basis, which will continue until the supply reaches 21 million. Bitcoin’s creator, Satoshi Nakamoto, wrote these parameters into the cryptocurrency’s code.

 

In contrast, the supply of gold depends on a number of factors. Its total supply remains rather difficult to determine, especially given technological advances that could lead to cheaper gold mining or further discoveries of deposits.

 

Rosenberg instead stated:

 

„One of the things we are certain about gold is that we know precisely its supply curve. We can’t say the same about Bitcoin’s respective curve. People think they know it, but they don’t.“

 

The economist also called BTC „a huge bubble“, arguing that people do not understand the supply of the asset or its creator: „It’s a classic fad, where you follow the herd, an extremely crowded market“.

 

Meanwhile, other mainstream financial giants seem to have a better understanding of the asset and its scarcity, and are in fact accumulating huge amounts of Bitcoin.