Unreasoned pessimism? – The aura of madness that regularly surrounds Bitcoin (BTC) is not all euphoric. Some, like David Rosenberg, sink incomprehensibly into their primary anti-cryptos convictions, without trying to understand their incredible potential.
Bitcoin, a bubble about to burst?
In a television interview with Bloomberg, economist David Rosenberg stated that he does not believe in Bitcoin, which he clearly believes is pure speculation:
„When you talk to most of the people who say you should put money into Bitcoin, they can’t even tell you who developed it or even how it is actually being exploited (…). It’s just a classic [speculative] gamble, a mass movement where you have to follow the herd. It’s a huge bubble. »
Thus, the only reaction of the economic analyst to the new historical high that the BTC price has just reached is to say that Bitcoin is „absolutely crazy right now“.
A misunderstanding of Bitcoin, but by whom?
While David Rosenberg mocks the lack of understanding that crypto-fans have of their Bitcoin idol, he himself seems to question the maximum amount of Bitcoin :
„Everyone seems to believe that we will reach this 21 million cap for the Bitcoin Secret constraint in circulation, but there is really nothing in the protocol to suggest that the supply of Bitcoin will not increase once we reach this limit. »
Really? However, if one takes a little interest in Bitcoin, one knows that when the very last block reward is paid out, around 2140, network inflation is programmed to go to 0. In other words, no more Bitcoins will ever be created beyond the 21 millionth.
After that, the miners who validate the transaction blocks via its Proof of Work (PoW) consensus will only receive the fees of the transaction issuers, i.e. the existing BTCs. This future situation is regularly the subject of much speculation about the future and of lively – but endless – debate.
When one really looks at the internal mechanics of Bitcoin, one realizes that its code was extremely well designed by Satoshi Nakamoto. The only question that arises is that of the valorization of a BTC. Everyone can then have his own point of view, but the current trend is clearly towards optimism about the fact that the king of cryptos would be largely undervalued, especially if we look at the behavior of institutional investors.