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Bitcoin is better 'stimulus asset' than gold, says 'Bond King' Jeffrey Gundlach

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(Kitco News) As the debate whether bitcoin is better than gold rages on, billionaire DoubleLine CEO Jeffrey Gundlach has weighed in.

"Lots of liquid poured into a funnel creates a torrent. Bitcoin maybe The Stimulus Asset. Doesn't look like gold is," Gundlach tweeted.

The DoubleLine CEO has been a long-time gold bull, but lately has been saying that he is less optimistic on the precious metal.

"I am a long-term dollar bear and gold bull but have been neutral on both for over six months," he said in a tweet.

Gundlach's tweet received mixed reactions, with many investors coming to gold's defense.

"Gold downtrend is the canary in the coal mine, BTC is simply a speculative mania," said one Twitter user.

"Gold acted rationally to 10YT and strength in the dollar. Gold has gone through booms and busts," said another user. "Bitcoin has not acted rationally. It is in a world for its own, it offers no advantage over other cryptos and has not gone through a single market bust yet."

There was also no lack of bitcoin supporters touting the cryptocurrency's latest rally.

"Bitcoin is better than gold. Bitcoin is also better than fiat currencies, bonds, stocks, real estate, and any other asset in the world," tweeted one user.

"Yep. Bitcoin is The BEST Asset there is. It's the Only asset you truly own & control 100% & can have it with you anywhere in the world without physically having to travel with it," said another.

Earlier this year, Gundlach said that he was neutral on both bitcoin and gold while stressing that 25% of a portfolio should be dedicated to real assets. 

"I turned neutral on gold a few months ago. I'm still neutral," he said during a webcast in January. "Gold is not holding support."

Gold peaked at a new record high of above $2,060 an ounce in August and has been consolidating ever since. This week, gold tumbled below $1,800, with April Comex gold futures last trading at $1,773.90, up 0.06% on the day.

As for bitcoin, Gundlach added that he turned neutral when the cryptocurrency crossed the $23,000 mark in mid-December. "It looks like a blowoff to me. Bitcoin is having $1,000-$2,000 intra-day moves. The market now looks dangerous with this type of volatility. I don't like having to worry that I'm going to lose 20% in an hour," he said.

Gundlach noted that the cryptocurrency has been making "outrageous moves" based on institutional investment narrative. "It fueled the frenzy," he said.

Yet, since the start of the year, bitcoin climbed more than $20,000, last trading near new record highs of above $52,000.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.