Jeffrey Gundlach, renowned gold bull and CEO of investment management firm Doubleline, says Bitcoin may be the “stimulus asset” while adding that it “doesn’t look like gold” Gundlach, an avowed long-term dollar bear, had preceded his comments on Bitcoin by noting that “a lot of liquid poured into a funnel creates a current.”
BTC outperforms gold
In the same tweet, Gundlach suggests that he came to the conclusion after remaining “neutral (on both gold and the dollar)” for the past six months. Over the past six months, the two stores of value have had contrasting fates, and BTC appeared to be winning the battle for supremacy.
After starting trading at just under $ 12,000 in September 2020, BTC hit a high of $ 57,399 on February 20, 2021, according to Messari. At the time of writing, the crypto asset was trading above $ 57,000. In contrast, gold, which hit its record high of $ 2,067.15 an ounce on August 7, 2020, stayed largely below $ 1,900 for the remainder of the year.
Despite the many predictions of a gold outbreak, the commodity has not yet met expectations. On the flip side, BTC might be on track to break the $ 100,000 mark after breaking $ 50,000.
Companies that choose BTC over gold
Meanwhile, Gundlach’s comments on BTC coincided with the shift in value preferences of large companies. For example, in its most recent filing with the US Securities and Exchange Commission, Tesla only disclosed its $ 1.5 billion BTC acquisition. While the electric car maker’s updated investment policy entitles the company to also take positions on gold bars or gold ETFs, the company has so far only focused on BTC.
Meanwhile, Gundlach’s views on BTC contradict the prominent opponent of the crypto asset, Peter Schiff. The gold bug, who previously praised Gundlach, has already attacked Tesla for choosing BTC over gold. Similarly, other Gold supporters on Twitter expressed their disappointment with Gundlach’s obvious linchpin for the crypto asset. A user named Pet Rock said:
Why Bitcoin and not one of the thousands of other coins that do the exact same thing? Why Bitcoin instead of a future Amazon or Google coin? I am amazed that such smart people are tempted by what is wishful thinking.
Another user, Dumbmoney, tweeted:
“Bitcoin’s volatility prevents Bitcoin from being a store of value. It is also correlated with bubble stocks. It’s speculative mania. It’ll pop. Gold simply tracks the reversal of real returns. If inflation picks up and the YCC hits, gold will go up. Pain until then. “
Still, some users like Harry expressed their support for Gundlach, saying:
“Bitcoin is Gold 2.0. The market clearly tells you that. In the past it had been gold and the miners took off. No more. It’s the digital age. “
What do you think of Gundlach’s tweet? You can share your views in the comments section below.
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