Jeff Gundlach: Bitcoin Is a "Lie"October 11, 2020
Billionaire investor Jeff Gundlach – who has since garnered a reputation for being a “bond king” – has laid out his thoughts regarding bitcoin and today’s financial markets. While he denies being a legitimate “bitcoin hater,” it’s clear from his recent words that he doesn’t believe in it, and he’s convinced that the cryptocurrency is nothing like what it’s fans claim it to be.
Jeff Gundlach Doesn’t Believe in BTC
In a recent interview, he commented:
I don’t believe in bitcoin. I think it’s a lie. I think that it’s very tracked, traceable. I don’t think it’s anonymous.
He further suggested that he had doubts regarding blockchain technology and all assets – whether they be coins or paintings – that can be digitized or placed on a distributed ledger. He stated:
I prefer things that I can put in the trunk of my car. I prefer my Mondrian on the wall to a digital entry that has the same value.
While his words may sound disheartening at first, it’s hard to take him seriously considering just how gloom-and-doom filled his interview was. Throughout the discussion, Gundlach explained that he sees the stock market crashing within the next 18 months. He also stated that the dollar was going to take a nasty dive and said that the only equities that Americans should be concerning themselves with are large technology stocks.
I do think that within 18 months, it’s going to crack pretty hard. When the next big meltdown happens, I think the US is going to be the worst-performing market.
In other words, the entire country is in on the verge of some heavy suffering. Our monetary markets are in the toilet and there is no hope whatsoever. It’s hard to look at individuals who prophesize such hazardous futures through a clear lens. There isn’t even a squeak of positivity. No matter what happens, things are not going to turn out well.
In addition, he appears to contradict himself quite a bit throughout his interview. For example, he at first claims that the dollar is going to fail, but then claims that it’s a solid investment over the next five years. He explained:
I’m actually long the dollar now, even though I don’t believe in it at all. It’s a good investment for the next five years.
So, you don’t believe in it, but you’re telling everyone to invest in it over a five-year period? How does that make any sense? He commented that he sees heavy inflation entering the mix given that the deficit of the United States has expanded in recent months.
Will Nothing Work Out?
He also posed another cynical view when he exclaimed:
If I want to invest for my great-great-great-great-grandchildren, I’m positive that certain real estate investments and certain resource investments would be obvious winners. Who cares about your great-great-great-grandchildren?
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