Crypto CEO Urges Savers to Own More Gold than Bitcoin
Both bitcoin (BTC) and gold will benefit massively from the current “inflation of money,” the CEO of a major crypto company predicts, while also admitting that he believes people should still own more gold than bitcoin.
The advice to savers worried about the unprecedented money printing in the wake of the COVID-19 panic in financial markets was made by Alex Mashinsky, CEO of crypto lender Celsius Network, in a recent interview with Kitco News.
According to Mashinsky, there are “consequences” to what central banks – and in particular the US Federal Reserve – has done in the wake of the crisis with regards to money printing:
“You don’t just print 3 or 4 trillion dollars and nothing happens,” he said, adding that the reported consumer price index (CPI) figures in the US “does not include inflation of money.” As a result, we now have “tremendous inflation of money that is hidden from us,” Mashinsky said, before revealing what he believes savers should do:
“So, before the Coronavirus, if you told somebody 5% gold and maybe 1% bitcoin, they thought you were crazy. Right now, after Corona, and after 36 million people unemployed, I would say 25% gold and 5% bitcoin.”
Mashinsky, who is also a venture capital investor, added that in his view, “gold may appreciate ten times its value, but bitcoin may appreciate a hundred times its value.” The solution to the current situation, according to the CEO is therefore to now own “much more gold, and much more bitcoin.”
Celsius offers both crypto and gold investing-related services.
Meanwhile, the well-known European hedge fund manager and central bank critic Crispin Odey warned that even gold may not be as safe as proponents like to believe.
According to Odey, who manages the hedge fund Odey European Inc., national governments may go as far as banning private gold ownership “if they feel the need to create a stable unit of account for world trade.”
“It is no surprise that people are buying gold. But the authorities may attempt at some point to de-monetize gold, making it illegal to own as a private individual,” Bloomberg quoted Odey as saying in a private letter to investors. Meanwhile, Odey is increasing investments in gold: holdings of June gold futures represented 39.9% of the fund’s net asset value at the end of the month, up from 15.9% at the end of March. (Learn more: As US Seized Gold in 1933, Is There a Threat to Bitcoin in the 2020s?)
See the full interview with Alex Mashinsky via Kitco below:
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