Last Thursday (December 31), David Rosenberg, an American economist who has long been bearish on Wall Street, admitted in an interview with CNBC that Bitcoin's performance exceeded his expectations.
Nevertheless, Rosenberg warned again that Bitcoin is facing an unprecedented bubble. In other words, the trend of Bitcoin in the past few months has been parabolic, which is a symbol of bubbles. Although this development may not reproduce the Internet bubble of 2000, Bitcoin has been used for a short time. The internal parabolic trend remains highly abnormal.
However, Rosenberg did not deny the value of Bitcoin. He said in an interview: For those investors who "want to get rich quickly" and can withstand price fluctuations, I will not tell you not to buy Bitcoin.
Suspected Bitcoin shortage
In an interview with Bloomberg in December last year, Rosenberg said that “Bitcoin is in a huge bubble” and believed that the current Bitcoin investment scenario is a “classic, herd and extremely crowded” transaction.
Robertsonger said that many people suggest buying Bitcoin, but they don’t know anything about the mechanism behind Bitcoin. These investors “think they know” but don’t understand Bitcoin’s supply curve.
In addition, he also expressed doubts about the 21 million Bitcoin supply limit.
In fact, nothing in the Bitcoin protocol makes it clear that once the supply reaches this limit, its supply will not increase.
Still regard "gold" as the best safe haven
When asked by CNBC about his views on the development of Bitcoin in 2021, Rosenberg said that he does not have enough knowledge about Bitcoin, but he knows more about the trend of gold.
Rosenberg said he believes that the US stock market is now 20-30% overvalued based on a series of different indicators. In the context of such a bubble-filled exchange, we believe there is another investment target that still has great potential, and that is gold. He said that gold's volatility is one-fifth of Bitcoin's, and its price has entered the best tenth year of the year. This is a safe haven from bubbles and there is still room for expansion.
Regarding when the big bubble will burst, he said it will not be too fast, because the fuse that triggered the bubble is the central bank's zero interest rate policy to stimulate the economy. The zero interest rate policy will continue, and the bubble will continue to expand thereafter.
Looking back on 2020, the S&P 500 Index rose 16.3%, the Dow Jones 7.2%, and the Nasdaq Index rose 43.6%, the largest annual increase since 2009. After the real economy was frozen, the stock market began to reverse. Reached new heights many times.
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