Bitcoin is a better investment than gold for Jeffrey Gundlach, CEO of DoubleLine Capital

A new gold enthusiast moves to the side of bitcoin as an investment: Jeffrey Gundlach, founder and CEO of DoubleLine Capital, an investment firm with more than $ 100 billion reported under its belt.

The rise of bitcoin in recent months seems to have changed the perception of Gundlach, who presents himself as a “bull” (that is, with a bullish view) of gold and bearish of the dollar.

Through a post on Twitter, the investor stated that in more than six months he has remained neutral with respect to the US currency and the precious metal. And now, considers that bitcoin could be “the asset of the stimulus”, in reference to the printing of money by the US Federal Reserve (Fed) in response to the crisis of the pandemic.

I am a long-term dollar bear and gold bull, but have been neutral on both for over six months. Too much liquidity poured into a funnel creates a torrent. Bitcoin may be the asset of the stimulus. It doesn’t look like gold.

Jeffrey Gundlach, Founder and CEO of DoubleLine Capital.

Gundlach’s stance seems increasingly common among traditional investors, in line with recent moves by institutions and large-cap firms that are investing in BTC. Nevertheless, The executive has made no mention or hint that this is DoubleLine Capital’s intention.

Bitcoin vs. gold as a long-term investment

Although still timidly, the CEO of the investment firm seems to point to a vision that has been slowly establishing itself in the collective imagination of the world of finance: bitcoin is digital gold. And for some, even better than physical.

Such is the case with hedge fund manager SkyBridge Capital. The company created a fund specializing in bitcoin at the end of last year. Not happy with this, in the presentation of the SkyBridge Bitcoin Fund, the firm compared cryptocurrency with gold and considered that the technological advance has several advantages, such as the existence of a public ledger (the Bitcoin blockchain) and being based on cryptography without the need for a central entity.

Bitcoin is at all-time highs relative to gold. Source: BuyBitcoinWorldwide.

When comparing the behavior of bitcoin and gold in recent years, we find a clear advantage of the cryptocurrency in terms of return on investment. BuyBitcoinWorldwide data shows how BTC is currently at all-time highs relative to gold, with a value greater than 29 ounces, at the time of writing this note.

When evaluating the profits of the cryptocurrency in its short 12 years of existence, it is not surprising to see how the idea of ​​bitcoin as a store of value is increasingly installed in the imaginary.

It’s not just investors, speculators, and tech enthusiasts who see BTC as a powerful booking tool. Even banks have already begun to appreciate the digital currency as a potential competition to gold. But some long-time investors, like Peter Schiff, are still reluctant to believe in the apparent paradigm shift that Bitcoin represents.