For Bitcoin to be sustainable again, it needs to get rid of excessive leverage. Ruchir Sharma, CEO of the Rockefeller International management company, stated this in an interview with CoinDesk.

The former Morgan Stanley executive and New York Times columnist compared the first cryptocurrency to Amazon. In the early 2000s, the dot-com collapse caused the e-commerce giant’s shares to drop ~90%, but over the next 20 years its value increased more than 300 times.

“Digital gold is basically a good idea spoiled by too much cheap money and speculative interest”said Sharma.

According to the expert, bitcoin is still in a “speculative mania.” Over the next six months, against the backdrop of the stock market decline, negative revaluation may continue, but will return to highs in the future.

The expert reminded that Wall Street bear markets last for about a year on average, and the decline reached 35% during this time. Time criteria not met for now, rollback ATH was realized as 20%.

“I am not yet ready to say that we have hit rock bottom for bitcoin and cryptocurrencies. The negative dynamics in the US, which is a benchmark for risk appetite worldwide, still apply.” explained.

Sharma allowed the scenario of replacing the US dollar with bitcoin as the world reserve currency in three to five years if the latter’s volatility declines.

Recall that the Bloomberg strategist predicted that bitcoin will bottom out and recover in the next six months.

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