Robin Brooks, an economist at the Institute of International Finance (IFF), bitcoin claimed that its existence was “just another bubble entity.”
Robin Brooks On March 14, a in the tweet He stated that Bitcoin has “zero value storage functionality,” “zero diversification benefits,” and “zero returns,” and that it will “explode” once the Federal Reserve gets serious about raising interest rates.
Brooks’ tweet comes at a time when the BTC price recently broke the $26,000 mark, hitting a year high, driving crypto bulls crazy.
However, Brooks’ comments show that Bitcoin’s recent price increase does not reflect its true value or potential.
Koinfinans.com As we have reported, the economist Tim Kehoe commented on Brooks’ tweet that BTC is a bubble asset. Kehoe agrees with Brooks that low interest rates can encourage investment in high-risk assets like Bitcoin. That’s why Kehoe thinks of asset bubbles in models that coincide with zero interest rates or their growth equivalents.
However, he wants to further explore the link between low interest rates and investing in high-risk assets by collecting more data.
The viability of Bitcoin as a stand-alone asset class has long been a highly controversial issue in the financial world.
Pro-crypto names see Bitcoin as a legitimate investment and store of value. However, opponents view it as a speculative bubble that will inevitably burst.
You can follow the current price action here.