Top Economist Slams Bitcoin as “Just Another Bubble”

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As a seasoned investor with a knack for navigating the stormy seas of financial markets, I’ve learned to take opinions from so-called “experts” with a grain of salt. Robin Brooks, the former chief economist at the Institute of International Finance, has been consistently dismissive of Bitcoin, labeling it as just another bubble asset.

Robin Brooks, a previous chief economist at the Institute of International Finance, still maintains his stance that Bitcoin is simply another speculative asset, even in light of significant increases that the leading cryptocurrency has recently experienced.

The economic expert has downplayed the recent rally, arguing that it was simply the result of an interest rate cut implemented by the Federal Reserve. 

In March, Brooks stirred controversy among Bitcoin supporters when he argued that Bitcoin offers no benefits in terms of diversification and has no yield. Moreover, he suggested that Bitcoin is unsuitable as a reliable form of value storage.

Following Bitcoin’s recent near-approach to setting a new all-time high, Brooks has been met with a fresh surge of “I-told-you-so” comments from Bitcoin enthusiasts, who have rediscovered an old 2023 social media post he made.

Despite some interpretations to the contrary, Brooks maintains that his initial statement did not serve as a prediction or guidance regarding the cryptocurrency’s value.

In 2022, the value of Bitcoin significantly dropped following the Federal Reserve’s decision to raise interest rates rapidly as a means to combat escalating inflation.

Starting in early 2024, Bitcoin reached an all-time peak because of the growth in Exchange Traded Funds (ETF). Later in September, the Federal Reserve made its first interest rate reduction since 2020, which contributed to a rise in prices for risky assets like Bitcoin.

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2024-11-01 23:30