Irrational pessimism? – The aura of madness that regularly surrounds Bitcoin (BTC) is not just euphoric. Some, like David Rosenberg, delve incomprehensibly into their primary anti-crypto beliefs, without seeking to understand their incredible potential.
Bitcoin, a bubble about to burst?
In a TV interview with Bloomberg, economist David Rosenberg said he doesn’t believe in Bitcoin , which he clearly sees as pure speculation :
“When you talk to most of the people who say to put money in Bitcoin, they can’t even tell you who the person who developed it is or even how it is actually mined (…). It’s just a classic [speculative] bet, 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 all-time high that the price of BTC has just achieved is to say that Bitcoin is „absolutely crazy right now“ .
Lack of knowledge of Bitcoin, but by whom?
While David Rosenberg pokes fun at the lack of understanding crypto-fans would have of their Bitcoin idol, he himself seems to question the maximum amount of bitcoin:
“Everyone seems to think we’re going to hit that 21 million cap for the BTC in circulation constraint, but there is really nothing in the protocol that suggests that the bitcoin supply cannot increase once we will have reached this limit. “
Is that so ? Yet, if one takes even a little interest in Bitcoin, one knows that when the very last block reward is paid, around 2140 , network inflation is scheduled to drop to 0 . In other words, no more bitcoin will ever be created beyond the 21 millionth.
After that, miners who validate transaction blocks through its Proof of Work (PoW) consensus will only receive fees from transaction issuers, i.e. already existing BTCs . This future situation is also regularly the subject of multiple speculations on the future and lively debates … but without end .
When we really take a look at the internal mechanics of Bitcoin, we see that its code has been extremely well designed by Satoshi Nakamoto. The only question that arises is that of the valuation of a BTC. Everyone can then have their own point of view, but the current trend is clearly optimism that the king of cryptos would be vastly undervalued, especially when looking at the behavior of institutional investors .