Bitcoin is a bubble waiting to burst, according to one investment advisor who’s bearish on the digital currency and thinks there are two severe risks ahead.
The prices of bitcoin and other cryptocurrencies have skyrocketed this year, with the world’s biggest digital coin climbing to a record high above $64,800 last week before plummeting over the weekend. As of Tuesday, bitcoin was trading 1% lower at a price of $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 at financial consultants 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 come crashing down: