Digital Assets: Bitcoin Sceptic Jeffrey Gundlach Now Says It Is a Dollar Hedge
Gundlach, known as the Bond King, says he’s not at all a bitcoin hater.
Back in 2017, Jeffrey Gundlach, the founder of investment management firm DoubleLine Capital, termed the growing interest in bitcoin as “mania.” He further said he was quite willing to let it carry on without him on board. (Coin Telegraph)
“I philosophically don’t believe it’s unhackable,” he said.
More recently, in a Business Insider interview, he was more direct in his criticism of the cryptocurrency.
“I don’t believe in bitcoin. I think that it’s a lie.”
He also added: “I think that it’s very tracked, traceable. I don’t think it’s anonymous.”
Earlier this week, however, there was a sea change in Gundlach’s attitude.
He spoke much more charitably of bitcoin on a webcast by Rosenberg Research.
Hedge against inflation
He told listeners of the webcast that they could consider gold and bitcoin as useful hedges against inflation.
“I think we are going to move into an area that has fat tails,” he said. Runaway inflation could happen – however that’s just as likely as outright deflation, Gundlach thought.
However, he was more bullish on gold saying it would increase significantly in the future, particularly after the United States presidential election.
[On the Business Insider interview, the investment manager had said that he was “very, very negative long-term on the US dollar” because of the spiraling budget deficit and the risk of high inflation.]
On the Rosenberg webcast, he suggested that investing in emerging markets such as India made more sense than the United States.
Meanwhile, Rosenberg pointed to the twin risks of a delayed vaccine and insufficient stimulus. “That’s prescription for something called the double-dip recession and the stock market is going down 20%.”
Related Story: Tyler Winklevoss Predicts Investment “Tsunami” In Bitcoin
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