Bitcoin or gold?
After noting that bitcoin, not gold, could be the next big market stimulus, a long-time gold bull and famed trader Jeffrey Gundlach had his head turned by cryptoassets.
“I am a long term dollar bear and gold bull but have been neutral on both for over six months. Lots of liquid poured into a funnel creates a torrent. Bitcoin maybe The Stimulus Asset. Doesn’t look like gold is.”
Bitcoin surpassed several price milestones earlier this week, reaching a value of more than $51,000 on 18 February as institutional investors and billionaires such as Elon Musk gave weight to the cryptocurrency.
BTC can never be an official reserve asset because it implicitly undermines every fiat currency on earth. This makes it immensely vulnerable to regulatory risk.