“Don’t Buy Gold and Bitcoin”: Mutual Fund CEO Announces Preferences
Speaking to CNBC on May 21, CEO and investment officer Peter Mallouk of asset management firm Creative Planning claimed that stocks and bonds are better options than Bitcoin and even gold.
Mallouk: “No need to buy bitcoin or gold”
“There is no need to enter the speculative world,” said Mallouk, arguing that assets such as Bitcoin and gold “see much more declines and explosions.” He made his speculative definition as follows:
“WE DEFINE THE SPECULATIVE AS THINGS THAT DO NOT GENERATE INCOME AND DO NOT OFFER YOU A RETURN AS INVESTORS.”
Bitcoin as Mallouk says this; it outperformed stocks, bonds, oil and gold. The 2020 performance of the cryptocurrency has compensated for all its losses so far after the collapse in mid-March. At the same time, the recovery of traditional markets that went into crisis was much slower; it’s not even certain whether they recovered.
It turned out that even Mallouk doubts the reliability of his own advice. While advising to buy bonds, he could not avoid talking to the issuer of “blindly believing” and continued as follows:
“IF YOU LEND MONEY TO A COMPANY OR GOVERNMENT, THAT COMPANY OR GOVERNMENT PROMISES YOU A REFUND. IT IS NO DIFFERENT THAN LENDING MONEY TO YOUR BROTHER – LET’S HOPE YOUR BROTHER IS ECONOMICALLY STABLE SO YOU CAN REPAY THE MONEY. ”
With this “lack of confidence” precisely, Bitcoin has become the largest investment available in terms of its “robustness” as a currency. Unlike Fiat, companies or bonds, in BTC; you do not have to worry about whether a small number of people can destroy the value of your investment with their actions. While Mallouk makes statements against Bitcoin, people are starting to prefer Bitcoin more.
Lebanese investors vote for BTC
Consumers voted once again in favor of Bitcoin this week against fiat investment. According to a survey conducted by the Lebanese, currently circulating on Twitter, 57.5% of 6,661 respondents prefer to receive their salaries as Bitcoin.
This widespread thought increases as the local currency continues to lose its Lebanese Pound. It was also very effective that the currency faded sharply against the dollar earlier this month.
At the same time, Gemini’s co-founder, Tyler Winklovoss , drew attention to the issue of governments’ gold buying strategies. In a statement Thursday, the British Central Bank’s blocking of access to Venezuela reserves “might cause some governments to rethink their gold strategies”.
Meanwhile, Mallouk believes that Bitcoin will fail. “Bitcoin is dead,” he said when the BTC / USD pair dropped to $ 3,100 in December 2018. He wrote in Forbes:
“BITCOIN WILL NOT GO SILENT; HOWEVER, THE RECENT RAPID DECLINE MAY BE THE BEGINNING OF AN INEVITABLE DEATH SPIRAL OR A CALL FOR THE LAST FLUTTER.
EITHER WAY, I SEE BITCOIN AS A WALKING DEAD. ”
According to the 99Bitcoins website, which has recorded articles describing Bitcoin dead, Bitcoin has died 380 times and has returned to life.