Economist David Rosenberg claimed “ignorance about bitcoin” after saying that the cryptocurrency was in a huge bubble. He admitted that bitcoin has exceeded his expectations, but still prefers gold because he understands it much better than bitcoin.
‘Bitcoin Exceeded the Expectations of Almost Everyone’
David Rosenberg, chief economist and strategist at Rosenberg Research, admitted on Thursday at Trading Nation that bitcoin has exceeded his expectations.
His admission came after he said in December that bitcoin was “in a huge bubble”. The economist told Bloomberg at the time that BTC was “just a classic trade, which follows the herd, extremely crowded”. In addition, he made the easily dismissed claim that the bitcoin code does not limit supply to 21 million coins, believing that “there is really nothing in the protocol that suggests that bitcoin supply cannot increase after we reach that limit” .
When asked on Thursday about how he sees 2021 playing for bitcoin, Rosenberg said:
I will just plead ignorance about bitcoin. I happen to understand a lot more gold.
He went on to compare bitcoin with gold. “I have been very optimistic about gold,” he noted. “The only thing I know about gold is that it has a fifth of bitcoin’s volatility.” In reiterating that he prefers gold over bitcoin, the economist conceded:
I think that bitcoin has exceeded the expectations of almost everyone, maybe not everyone, certainly exceeded mine.
Looking at the bitcoin graph, Rosenberg was also asked whether he sees bitcoin as “the biggest bubble happening now”. He replied:
I would say there are some other bullish stocks on the S&P 500 that could rival that, but I would say yes … all you had to do was take a look at the bitcoin chart for the past few months and it looked parabolic.
Stressing that it is possible to overlay the bitcoin graph in the last few months with dot-com stocks, he concluded: “I will not say that it will plummet like dot-com shares, but rather the parabolic movement of bitcoin in such a short period of time, I would say that , for any security, is highly abnormal. “
However, Rosenberg said that for investors who “want to get rich quickly” and “can tolerate volatility, I am not going to tell you not to buy bitcoins”.
Do you agree with David Rosenberg about bitcoin? Let us know in the comments section below.
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