The CEO of DoubleLine Capital, Jeffrey Gundlach, had recently stated that Bitcoin might very well be a more suitable investment when compared to gold. Although Gundlach has been a long-time supporter of both the U.S dollar and the use of gold itself, he has nevertheless elected to stay impartial on both as of late. The main reason for this neutrality is the emergence of Bitcoin and cryptocurrency in general.
‘Bitcoin Not As Great As I had Previously Assumed’, Says Gundlach
Contrary to what has been stated earlier, Gundlach has now decided to remove his support for any financial instruments which could be potentially utilised to rally support for Bitcoin. The main reason for this withdrawal of support could be cited as Bitcoin itself being in a ‘bubble territory’ and the added risk of the asset becoming overheated.
Still, it must be acknowledged that Bitcoin has enjoyed considerable support from many investors and remains the largest cryptocurrency today for a reason.
Many Look To Digital Currency As The Ongoing Pandemic Looms On
Furthermore, another major reason is that of the Covid-19 pandemic itself. Prior to the pandemic, gold was looked upon as a sort of hedge which was to be used against inflation, however, the lack of contact and travel due to the ongoing pandemic has restricted this use, and many are now considering making the jump to cryptocurrency due to its digital and non-contact-based nature.
This is worth pointing out as in March 2020, just before the world was about to shut down, Bitcoin actually experienced losses as it dived below $4000. However, as the pandemic went on, Bitcoin was able to end the year with approximately $20,000.
What’s Next For Gundlach And Bitcoin?
Numerous institutional, global and regional players are consistently investing in Bitcoin, and as a result, the world’s largest cryptocurrency has managed to fuel its price to a whopping $55,000, which is actually its all-time high, with many more investments still predicted to come in the near future.
Gundlach, however, remains vigilant and cautious, and while he admitted that gold would no longer be classified as a stimulus asset, cryptocurrency, on the other hand, can be viewed as such.
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