Hedge-fund manager and bitcoin bull Brian Kelly affirms that Bitcoin “is the new gold” and encourage investors to buy that coin like a protection against trade war. Well, I guess he missed some weeks ago, when Bitcoin sank from $16K to $6k, returning now to $11K. But, due to his position, he deserves to be listened. Let’s se…
To combat fears of a trade war, place your cash in bitcoin, said hedge-fund manager and bitcoin bull Brian Kelly.
“[Bitcoin] would be the new gold,” Kelly mentioned Friday on CNBC’s “Fast Funds.”
“In this atmosphere,” Kelly stated of fears of a possible trade war, “I want to own those points that are deflationary and fixed supply in an inflationary environment. And have a look at what bitcoin has completed the final couple of days.”
Bitcoin is up about six.5 percent this week, although gold is down 0.7 percent.
In fact, the volatile asset continues to regain a few of its February losses. It peaked around $19,500 in mid-December, only to fall under $6,000 final month. Prices hovered just more than $11,000 Friday.
Meanwhile, the markets have noticed much better days. On Thursday, President Donald Trump announced that a 25 % tariff on steel and a ten percent tariff on aluminum would go into effect next week, sending both the Dow Jones industrial average as well as the S&P 500 plunging in fears of possible trade wars.
During a trade war, Kelly said, currencies get weaker, such as the dollar’s depreciating value final week, and costs rise.
“Generally speaking, you desire to personal hard assets,” he stated.
In the past, stated Kelly, who has “like 90 percent” of his dollars invested in bitcoin, investors would hedge with gold.
“But you know what, now we have bitcoin,” he stated. “Bitcoin has a fixed provide. It acts exactly like a hard asset, exactly like a commodity.”