Bitcoin is a bubble waiting to burst, according to an investment advisor who views the digital currency bearishly and believes two serious risks are imminent.
Bitcoin and other cryptocurrency prices have skyrocketed this year. The world’s largest digital coin rose to a record high of over $ 64,800 last week before falling over the weekend. As of Tuesday, Bitcoin was trading 1% lower at $ 55.2489.
“I don’t know where it will end or how it will end, but it will end,” Stephen Isaacs, chairman of the investment committee of financial advisor Alvine Capital, told CNBC’s “Squawk Box Europe” on Monday. “And when it ends, it will be ugly because there will be nothing there.”
Here are the two reasons Isaacs expects bitcoin prices to decline: