The Bitcoin (BTC) price hike has generated all kinds of comments. While many of them are bullish, some still question cryptocurrency as a new class of store of value. David Rosenberg, chief economist and strategist and president of Rosenberg Research & Associates, recently called the supply of gold more predictable than Bitcoin.
“Everyone seems to believe that we will reach the 21 million supply cap, but there is really nothing in the protocol to indicate that the supply of bitcoin cannot increase when we reach this limit,” Rosenberg said in an interview. Bloomberg on Thursday. … …
Bitcoin’s $ 21 million offer is one of the store’s biggest perks. The asset also has a steady stream of BTC that goes into circulation and continues until the supply reaches 21 million. The creator of Bitcoin, Satoshi Nakamoto, known by his pseudonym, wrote these parameters into a Bitcoin code.
On the other hand, gold depends on a number of factors. The final offer is still undecided, especially given the technological advances that could lead to gold mining at a lower price or more discoveries.
“The only thing we know about gold is that we know the supply curve for gold with confidence,” Rosenberg said. “We do not know the future Bitcoin supply curve,” he added. “People think they know, but they don’t really know.”
The economist also called BTC a “mega bubble” and said that people do not understand the supply or the origin of the asset. “This is a classic herd trade, a very lively trade,” he said.
Meanwhile, it looks like other big financial giants have a better understanding of the asset and the impact of the scarcity as they store the amount of bitcoin as part of the company’s buying trend.