David Rosenberg, chief economist and strategist at Rosenberg Research, has admitted that he had been ignorant of Bitcoin following a remark saying that the cryptocurrency was in a massive bubble. The economist now believes that the cryptocurrency has completely exceeded his expectation. Although, he still prefers gold to BTC as he understands it a lot better.
David Rosenberg Admits Ignorance on Bitcoin
In December 2020, Rosenberg told Bloomberg that Bitcoin is a classic, follow-the-herd, extremely crowded trade. The economist even claimed that the code of the cryptocurrency is not just limited to the supply of 21 million coins. He believes that there is really nothing in the protocol to suggest that the supply of bitcoin can’t go up once we hit the limit.
When recently asked how the economist saw Bitcoin in 2021, Rosenberg said:
“I’ll just plead ignorance on bitcoin. I just happen to understand gold a lot more. I’ve been very bullish on gold. The one thing I know about gold is that it has one-fifth the volatility that bitcoin does.”
While confirming that Bitcoin has exceeded his own expectations:
“I think bitcoin has exceeded almost everybody’s expectations, maybe not everybody, certainly has exceeded mine.”
Bitcoin Is for Investors Who Can handle the Volatility: Rosenberg
He was also asked whether the price action of Bitcoin was comparable to that of the dotcom stocks:
“I’m not going to say it’s going to plunge like the dot-com stocks did but the parabolic move in bitcoin in such a short time period I would say, for any security, is highly abnormal.”
Lastly, Rosenberg concludes that Bitcoin is perfect for those investors who can handle the volatility or who want to get rich in a short time.
Rosenberg, who served as Merrill Lynch’s top North American economist from 2002 to 2009, is known for his pessimism over the past several years. In 2019, he told investors a recession was virtually unavoidable.