Economists like David Rosenberg have to state that Bitcoin is a bubble and that investors do not understand how the supply works. He also pointed to how it is possible to go past the 21 million cap on the supply constraint. Commenting on the current price hike he expressed that the charts now look absolutely crazy.
Rosenberg also pointed to how the supply curve of Bitcoin is something that investors think they know, but they do not know. He pointed to how investors are sure of the Bitcoin Supply Curve.
He states “It’s just a classic, follow-the-herd, extremely crowded trade. It’s in a massive bubble.”
The bubble story apart, fund managers are now placing sky-high predictions for the Bitcoin. Predictions project growth as high as 400,000 on its scarcity value with respect to gold.
Commenting on Bitcoin, Sydney Ifergan, the crypto expert stated, “Whether Bitcoin (BTC) is a projected bubble or not, it has displayed a 204% growth in 2020. Make Hay While the Sun Shines.”
Investors understand that speculation is risky and they are in reality attracted to high returns despite the associated risks. Anything of high value comes with risk.
Recently, American Millionaire, Mark Cuban expressed that “Bitcoin is more a religion than a solution to any problem.”
Mark Cuban reinstated on how the government’s regulatory measures have the role of protecting their currencies and to demand taxes. If the asset would attract greater investor interest then regulators would surely step in.
Mark Cuban calls it a collectible financial asset. He also points to how all the talks about Bitcoin replacing cryptocurrency is counterproductive. And, on how countries will do what it takes to protect their currencies regardless of how much fans want to pretend that it is a hedge versus apocalyptic scenarios.
It is important to note that the US Commodity Futures Trading Commission (CFTC) classifies Bitcoin as a commodity just like gold.
Bitcoin 25% to 30% Sell Off
Experts opine that Bitcoin could see a 25% to 30% sell off in the New Year. Some of them have to state that it took them long to take to the train of Bitcoin investment, but have to state that they are more than happy doing it.
Many of them are more than glad to buy Bitcoin and put it away for long-term investment to watch it grow. The belief system is growing, whether they call it a religion or bubble, BTC is catching up.