Bitcoin (BTC) is a recommended hedge against fiat currency inflation along with gold, one of its well-known critics now says.
In an appearance on Rosenberg Research’s webcast series on Nov. 2, Jeffrey Gundlach, CEO of investment management firm DoubleLine, produced rare praise for Bitcoin.
Gundlach tips Bitcoin and gold for fiat protection
Gundlach, informally known as the “Bond King,” is no stranger to discussing Bitcoin, but had previously made it clear that he would not invest.
In an interview with Business Insider last month, the billionaire called Bitcoin a “lie,” building on previous claims that he did not believe it was “unhackable.”
“I don’t believe in bitcoin. I think that it’s a lie. I think that it’s very tracked, traceable. I don’t think it’s anonymous,” he told the publication.
Nonetheless, Gundlach insisted that he was “not at all a Bitcoin hater” — a comment which he appeared to strengthen this week.
Telling listeners that they should own something to hedge against inflation, he mentioned gold and Bitcoin as good possibilities.
That perspective marks the closest that Gundlach has come to reversing his hands-off stance and advocating that investors actually buy Bitcoin.
Gold, meanwhile, is set to increase markedly over time, he continued, in line with other proponents of the precious metal currently forecasting major gains after the United StatesS. presidential election.
Perceptions vs. returns
Data shows the extent of Bitcoin’s returns versus gold and other macro assets. Collated by on-chain analytics resource Skew, year-to-date figures were 88% as of Nov. 3, with gold on 24% and the S&P 500 just over 2%.
Against a backdrop of intensifying coronavirus lockdowns and associated reduced economic activity, Bitcoin is tipped to continue its rapid gains in the near- to mid-term.
As Cointelegraph reported, some expect new all-time highs to appear within the next three months, while statistician Willy Woo has argued that the cryptocurrency is already diverging from the path of other macro assets, including gold.