This Billionaire Recommends Buying Bitcoin Over Gold In Certain Cases

An American billionaire recommends buying Bitcoin when there is a bull market. According to him, it is more advantageous to invest in cryptocurrency rather than gold in certain economic conditions.

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The cryptocurrency market crashed a few weeks ago. Bitcoin fell around $30,000 before plunging under $25,000 the last days. All altcoins are currently in the red. Ether, the second most valued cryptocurrency, fell back below $1,300.

Despite this difficult context, many investors continue to bet on cryptocurrencies. This is the case of Stanley Druckenmiller, hedge fund manager. During an interview with the Sohn Conference Foundation, the billionaire recommended investing in BTC in the event of a “bullish phase” steps.

Gold or Bitcoin? It all depends on the market

“If you believe we are going to have irresponsible monetary policy and inflation in the future”, you will have to turn to Bitcoin, notes the investor. The man is pointing the financial support plan decreed by central banks during the Covid crisis. To keep the economy afloat, banks, including the US Federal Reserve, printed a large amount of notes.

This money printing is blamed for causing inflation. In the United States, consumer prices jumped 8.6% over one year, a record not reached in 40 years. The inflation of fiat currencies, such as the dollar or the euro, could ultimately favor Bitcoin and cryptocurrencies. In this case, Stanley Druckenmiller prefers Bitcoin to gold. “Of course, if I think we’re going to have an inflationary bull market, I’d want to own Bitcoin more than gold”emphasizes the fund manager.

On the other hand, the billionaire recommends caution in the event of a “bear market”, the expression which evokes a bear market. If the decline is widespread across most assets, it is prudent to turn to the gold metal. BTC, still highly correlated to traditional financial markets, is likely to suffer from a general decline in prices. “If I thought we were going to have a bear market, I would want to own gold”, underlines the American investor. In this context, gold, a safe haven par excellence, could serve as protection against the vagaries of the markets.

Read also: Bitcoin has no future according to the CEO of this cryptocurrency exchange platform

Many investors still advise betting on Bitcoin. This is the case of Robert Kiyosaki, the author specializing in finance and personal development. The millionaire believes that Bitcoin will eventually become a safe haven as the dollar threatens to crash.

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