With his criticism of Bitcoin, David Rosenberg reveals his lack of understanding of the cryptocurrency.
The current record run of Bitcoin ( BTC ) calls all kinds of commentators on the scene
Although most of them are brimming with praise for the cryptocurrency, there are still critics who are looking for the „fly in the ointment“. For example, David Rosenberg, chief economist, strategist and president of the market research institute Rosenberg Research & Associates, who believes that the amount of gold in circulation is more predictable than that of BitQT.
„Everyone is apparently convinced that the upper limit of 21 million currency units is over, but there is nothing in the programming code that stipulates that the amount of Bitcoin in circulation cannot be subsequently increased as soon as we hit this mark“, as Rosenberg stated in an interview with Bloomberg yesterday, Thursday .
Limiting the cryptocurrency to a maximum amount of 21 million currency units in circulation is one of the most important arguments in favor of Bitcoin as a store of value . Until this upper limit is reached, the rate of increase in the amount in circulation will be almost “halved” every four years, which will lead to an increasing shortage. The parameters for this halving and the ultimate upper limit are firmly anchored in the programming code of Bitcoin, which simply makes Rosenberg’s claims wrong.
While the cryptocurrency or the development of the amount in circulation can be calculated, it is unclear how large the final amount of gold in circulation will be
In particular, the rapidly advancing technological progress could increase both the rate of increase and the amount in circulation of the precious metal in the future.
“With gold, we can at least say that we know the development of the supply curve with certainty,” as Rosenberg mentions in an interview as a major advantage of the precious metal. And further: „We do not know the future development of the Bitcoin supply,“ said the economist. And finally: „People say they know, but they don’t.“
Accordingly, he describes the cryptocurrency as a “massive speculative bubble” because investors would not know how Bitcoin supply developed. From this he concludes: „This is classic herd behavior.“