Gold Investors Are Moving to Bitcoin and Ethereum, According to Bloomberg Commodity Strategist Mike McGlone

Gold Investors Are Moving to Bitcoin and Ethereum, According to Bloomberg Commodity Strategist Mike McGlone

Gold is experiencing outflows as investors embrace cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), according to Bloomberg commodity strategist Mike McGlone.

McGlone says in a new Stansberry Research interview that investors are “giving up on gold” and instead taking positions in the two largest cryptocurrencies by market cap.

“The thing that I have underestimated this year is how much there’s been disdain and outflows from gold, and people giving up on gold and going to Bitcoin and Ethereum.

Basically putting Bitcoin and Ethereum in the same bucket as gold.

So as we speak, gold is down about 7% on the year and Bitcoin’s up almost 70%. Ethereum’s up almost 400%.”

McGlone says the growing popularity of Bitcoin is due to its deflationary characteristics at a time when fears of currency debasement are rife due to rising money supply.

“We can fully expect debt-to-GDP, QE [quantitative easing] levels, fiscal/monetary stimulus to continue to keep an unlimited supply of fiat currencies.

Meaning that that base of how you price Bitcoin should continue to have unlimited supply of fiat currencies versus limited supply of Bitcoin. It means that price must go up by rules of economics.”

The commodity strategist says that a futures-based Bitcoin exchange-traded fund (ETF), a financial product that provides exposure to the flagship cryptocurrency via derivatives, could be launched by the end of next month.

“… potentially by the end of October. But [as] a futures-based ETF, kind of the way you track most commodities. … So it’s just a matter of time.

[U.S. Securities and Exchange Commission chair Gary] Gensler even hinted at that. It’d be a nice little baby step for the SEC. So it makes sense.”

Original Source :dailyhodl.com

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