The success of Bitcoin continues to amaze many within and outside the cryptocurrency space. The cryptocurrency, since its inception, has remained the most significant and most valuable digital asset in the Blockchain space. The digital asset, despite its success, is not one without its fair share of critics, as many have continued to criticize the assets due to issues like price volatility. Many famous investors like Jeffrey Gundlach have publicly criticized digital assets and declaring their preference for traditional assets like Gold over Bitcoin. However, it seems Gundlach has second thoughts now, as the investor believes Bitcoin is currently ahead of Gold.
Gundlach believes Bitcoin has outperformed Gold in the last six months
Gundlach, the CEO of DoubleLine Capital, is well known as a critic of Bitcoin. The Executive has previously criticized cryptocurrency in the past, as he once claimed he doesn’t believe in the asset. However, with the recent comments from the investor, he has now joined the growing list of Bitcoin critics, who are now admirers. In his tweet last week, Gundlach admitted that while he perceives Bitcoin as a stimulus asset, Gold is not at the moment. The investor concedes that while he is popularly known to be a huge fan of Gold, he has spent the last six years tracking both assets’ progress.
According to him, Bitcoin has outperformed Gold in that period of observation. Gundlach admitted that while Bitcoin was around $10,000 when he started to track, the digital asset is almost $50,000 at today’s prices. That is about a 400% increase in fortune in just six months, and the businessman concedes that it will be hard for Gold to pull such a feat at the moment. On the other hand, while Bitcoin had seen its prices plummet in the last six months, Gold had been dropping in value from its previous all-time high of $2,025 in July 2020. Hence, this is a reason why Gundlach believes that despite the issues surrounding Bitcoin’s price volatility, potential investors should consider it over Gold.
Is Gundalk right?
While many analysts and critics have weighed the statements of Gundlach, it is hard to decide whether the famous investor is right or wrong. Bitcoin has witnessed a pulsating rise in fortune since January 2020, which had seen the assets break several records in prices. Gold, on the other hand, despite being one of the most preferred assets in the past, has dwindled in prices in the last three months at least. However, like JP Morgan analysts, the popularity of Bitcoin could force many potential investors to ignore Gold, even if it possesses some kind of advantage over Bitcoin.
The institutional adoption of Bitcoin by many prominent corporations has also aided the fortunes of the cryptocurrency, which is not the same with Gold. The traditional asset was dumped last year by many investors, including Warren Buffet, with reports suggesting that they were secretly buying Bitcoin. However, while Bitcoin and Gold have their fair share of admirers and critics, it looks like Gundlach has a case. The price and performance of Bitcoin in the past few months suggest that it has currently outperformed Gold, and yes, Gundlak is right.