Jeffrey Gundlach changes his mind: BTC is ‚a good solution against inflation‘.

Bond King‘ Jeffrey Gundlach argues that Bitcoin is a good solution to fiat money inflation.

A well-known investor, previously skeptical of Bitcoin (BTC), now recommends it along with gold as a protection against inflation that afflicts the fiat.

On 2 November, during the Rosenberg Research webcast series, Jeffrey Gundlach, CEO of investment management company DoubleLine, praised Bitcoin.

Gundlach: Bitcoin and gold to protect against fiat

The investor, informally known as the „King of Bonds“, had discussed Bitcoin before, but made it clear that he would not invest in the asset.

In an interview with Business Insider last month, the billionaire called BTC a „lie,“ based on previous claims that he did not believe it was „unassailable:

„I don’t believe in Bitcoin. I think it’s a lie. I think it’s very traceable. I don’t think it’s anonymous.“

However, Gundlach insisted that he was „absolutely not a Bitcoin hater“, comments that seem to be gaining value this week. The expert, in fact, suggested to listeners that they have something to protect themselves from inflation, mentioning gold and Bitcoins as good choices.

This statement is the closest thing so far to a real Bitcoin investment advice from Gundlach.

In his view, gold is set to increase significantly over time: this forecast is fully in line with what other supporters of the precious metal have expressed, who expect significant gains after the US presidential elections.

Perceptions vs. returns

The data shows the magnitude of Bitcoin returns compared to gold and other macro assets. According to Skew, an on-chain analytics platform, BTC grew by 88%, gold by 24% and S&P500 by just over 2% in the last year.

In a context of intensifying coronavirus-related lockdowns and the ensuing economic crisis, Bitcoin should continue to gain ground rapidly in the medium term.

As reported by Cointelegraph, some experts expect new historical highs within the next three months, while statistician Willy Woo has argued that cryptocurrency is already moving away from trends in other macro assets, including gold.