Jeffrey Gundlach, the capital chief of DoubleLine, revealed in reference to the recent rally in the cryptocurrency market that Bitcoin can be a better investment option than Gold. Jeffrey himself though had been a long-term bull on gold but has neutralized his investment strategies witnessing the expected growth in the crypto industry.
What Changed Jeffrey Gundlach and Other Investors’ Perception
Gundlach throughout his investment career has supported the uptrend in the metal coin but recently, has started considering the digital asset as a better option to trade.
Jeffrey Gundlach of DoubleLine Capital, with over $130 million assets under their management, shared in his tweet that he has turned neutral on both Gold and US Dollar, and also stated Bitcoin as “the stimulus asset.” He said:
“Bitcoin may be the stimulus asset. It doesn’t look like gold is.”
Jeffrey’s comment on Bitcoin investments is yet another sign that the crypto industry has the potential to turn down the traditional finance system and is undoubtedly inducing institutional money managers to eventually draw out cash from Gold.
History reveals that Gold has always been seen in a way to overcome inflation, but over the past year, Gold ETFs have seen an outrush. Bitcoin, on the other side, is backed by billionaire investors like Elon Musk and hedge fund moguls like Paul Tudor Jones.
Bitcoin vs Gold
No doubt Jeffrey Gundlach’s mind changed from “I don’t believe in bitcoin,” to refer to it as a stimulus asset witnessing the high rise in the BTC price, from $10,000 to $52,000 in just a matter of a couple of months.
The digital asset has managed to reward its investors with far better returns than gold, amid the tax encouragement levied by the authorities to counter the negative impact of the COVID-19 pandemic on the economies.
Meanwhile, on the other side, Gold witnessed its record high of $2,075 in August 2020, and since then, it hasn’t shown any impressive trend in its price.