While investors agree that the current monetary policies from central banks will spell doom for the market, there is no consensus on which asset takes primacy as a hedge against the coming uncertainties. Mark Mobius of Mobius Capital Partners recently told Bloomberg, that rising bitcoin interest will only fuel the need to buy “hard asset” like gold.
Monetary Policies Aiding Bitcoin Haven Asset Argument
Speaking to Bloomberg on Tuesday (August 20, 2019), the veteran investor became the latest to fault the easing monetary policies of central banks across the globe.
According to Mobius, once central banks pivot to a more dovish stance, quantitative easing will reach unprecedented levels, remarking “they [central banks] are going to be printing like crazy.”
As previously reported by BTCManager, several commentators have come in 2019, talking up bitcoin’s rising prominence in the haven asset scene.
Some stakeholders say bitcoin helps to de-risk investment portfolios. This position usually draws from the lack of correlation between the top-ranked crypto by market cap and mainstream assets.
In an interview with CNBC, Jeremy Allaire, CEO of Goldman-Sachs backed Circle highlighted bitcoin’s status as a haven asset amid growing global uncertainty.
For Allaire, investors are increasingly becoming more interested in non-sovereign assets that cannot be affected by political squabbles.
While other stakeholders like Dev Kantesaria of Valley Forge Capital Management that bitcoin can guarantee some short-term gains, it isn’t a safe haven asset. Rather, for Kantesaria, BTC is still a speculative play which doesn’t offer any long-term investment protection.
However, BTC has outperformed the S&P 500 in the last decade and is up close to 200 percent since the start of the year. The top-ranked crypto has also been profitable for more than 98 percent of its history.
Bitcoin Will Boost Bullion Buying
For critics like Mobius, bitcoin isn’t the answer and investors should instead focus on gold. Commenting on the matter, Mobius opined:
“You have all these currencies, new currencies coming into play. I call them ‘psycho currencies,’ because it’s a matter of faith whether you believe in Bitcoin or any of the other cyber-currencies. I think with the rise of that, there’s going to be a demand for real, hard assets, and that includes gold.”
Given the changing demographics of the investment class, commentators like Max Keiser forecast that more money will flow into bitcoin than gold. Barry Silbert of Digital Currency Group recently declared that trillions of dollars could potentially enter the BTC market over the next couple of decades.