TL;DR Breakdown:
- DoubleLine Capital chief, Jeffrey Gundlach says Bitcoin is a better stimulus asset than gold.
- The co-founder of Nexo also made a similar comment that BTC has proven to be better than the metal.
The surge in Bitcoin price, which notably began in the last quarter of 2020, is causing many gold investors to rethink their opposing stance for the cryptocurrency. A long-term gold bull, Jeffrey Gundlach, now considers Bitcoin as a better trade than the yellow metal. Gundlach is the chief executive officer at DoubleLine Capital LP, an investment management company. His statement probably follows the recent increase in the value of Bitcoin.
On Wednesday, the cryptocurrency topped the long-awaited $50,000 level, setting a new all-time high at an even higher value of $52,533, according to Coinmarketcap.
Jeffrey Gundlach picks Bitcoin over gold
Jeffrey Gundlach took to his Twitter handle to disclose his new stance with the leading cryptocurrency. First, he explained that he has been a long-term gold bull and the US dollar bear. However, he turned neutral on both the precious metal and the currency for the past six months. Jeffery Gundlach then added, “Lots of liquid poured into a funnel creates a torrent. Bitcoin maybe The Stimulus Asset. Doesn’t look like gold is.”
Judging by that statement, Gundlach somewhat believes that the rally in Bitcoin’s price was contributed by the wave of cash pumped that entered into the financial system amid the coronavirus pandemic. For the long-term gold bull to choose Bitcoin over gold, it means the cryptocurrency could possibly tap inflow from the gold market.
Nexo co-founder says Bitcoin is better
Antoni Trenchev, the co-founder of Nexo, a cryptocurrency lending platform, also holds a similar opinion about Bitcoin. While speaking with Bloomberg, he mentioned that Bitcoin proved to be the “best performing asset on any significant timeline.” He stated that the cryptocurrency was better than gold, despite that people often compare the precious metal to Bitcoin for having similar characteristics.
