Jeffrey Gundlach, CEO of the well-known gold bull market and investment management company Doubleline, said that Bitcoin may be a “stimulus asset”, adding that “it does not look like gold.” Gundlach is a self-proclaimed long-term dollar bear The person at, before commenting on Bitcoin, he pointed out that “a large amount of liquid poured into the funnel will cause a torrent.”
BTC is better than gold
In the same tweet, Gundlach suggested that he came to a conclusion “after being neutral (against gold and the U.S. dollar) for the past six months”. In the past six months, the luck of two valuable stores has come in stark contrast, and BTC seems to have won the supreme battle.
According to Messari, after starting trading in September 2020 for less than $12,000, BTC has since rebounded to a peak of $57,399 on February 20, 2021. At the time of writing, the trading price of crypto assets exceeds $57,000. In contrast, gold reached a record high of US$2,067.15 per ounce on August 7, 2020, but remained below US$1,900 for the rest of the year.
Similarly, although there are many predictions about the explosion of gold, so far, commodities have failed to meet expectations. On the other hand, BTC may be expected to break the $100,000 mark after breaking through $50,000.
The company chooses BTC ahead of gold
At the same time, Gundlach’s comments on Bitcoin (BTC) coincide with the changing store of value preferences of large companies. For example, Tesla only disclosed its purchase of BTC for US$1.5 billion in a file recently submitted to the US Securities and Exchange Commission (SEC). Although the latest investment policy of the electric car manufacturer authorizes the company to also hold positions in gold bullion or gold ETFs, the company has so far only focused on BTC.
At the same time, Gundlach’s view of Bitcoin is now at odds with that of Peter Schiff, a famous opponent of crypto assets.The golden bug praise Gundlach has criticized Tesla for choosing Bitcoin (BTC) over gold. Similarly, other gold supporters on Twitter expressed disappointment at Gundlach’s apparent shift to crypto assets.A user named Pet Rock Say:
Why use Bitcoin instead of thousands of other identical coins? Why use Bitcoin instead of future Amazon coins or Google coins? I am surprised that such a smart person is attracted by wishful thinking.
Another user, Dumbmoney Tweet:
“Bitcoin’s volatility makes it impossible to store value. It is also associated with bubble stocks. This is speculative mania. It will pop up. Gold is just tracking the reciprocal of actual earnings. If inflation rises and YCC occurs, gold will soar. Until then it hurts.”
However, some users like Harry expressed support for Gundlach:
“Bitcoin is Gold 2.0. Obviously, the market is telling you. In the past, this will be the take-off of gold and miners. No longer. This is the digital age.”
What are your thoughts on Gundlach’s tweets? You can share your views in the comments section below.
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