Written by :
Published on :
Bitcoin's bubble is about to burst, so says Stefan Hofrichter, head of global economics and strategy at Allianz Global Investors.
"As a currency and asset class, bitcoin has potentially fatal flaws – which is why we believe it's a matter of when, not if, the bitcoin bubble will pop," Hofrichter tells CNBC.
"As a currency and asset class, bitcoin has potentially fatal flaws – which is why we believe it's a matter of when, not if, the bitcoin bubble will pop."
He noted that the cryptocurrency "ticks all of the boxes that we consider to be essential criteria of any asset bubble," including a fivefold surge in trading volumes over the last five years, lack of financial regulation and the launch of related financial instruments such as bitcoin futures.
CoinGeek.com founder Calvin Ayre agrees.
"(This) guy is correct that Segwit coin has no use and is a bubble," Ayre, a proponent of Bitcoin Cash (BCH), claims in regard to Bitcoin. "Bitcoin BCH has this all solved and is poised to be widely adopted globally. Blockchains don't work without a token and the best one out there is BCH so everything will be on this one."
Bitcoin has fallen sharply since leaping 2,000 percent in the 12 months through December to a record high above $19,000.
Watch below
Bitcoin bubble 'just about to burst,' major money manager from CNBC.
