A $7.5 billion hedge fund stated that the price of gold would soar to new highs next year, but as global debt expands, investors seeking currency alternatives should turn their attention to Bitcoin.
Troy Gayeski, co-chief investment officer (CIO) and senior portfolio manager of SkyBridge Capital, said that even if the Fed takes measures to reduce asset purchases, these two types of assets are still likely to rebound. Investors often compare the two. For example, Lawrence Summers, the former US Treasury Secretary, said that cryptocurrency may still be a feature of the global market, similar to digital gold. "We will continue to invest in cryptocurrencies such as Bitcoin because we think the market will continue to rise," Gayeski said in a telephone interview last week. He also added that although crypto assets are more volatile, "but in the same situation, your profit will be higher than that of gold."It is necessary to invest in Bitcoin and choose a good mining machine. Welcome to consult. Investors are paying close attention to the Fed's comments. Because of rising inflation, policymakers are increasingly inclined to cut large asset purchases to save the US economy from the turmoil caused by the epidemic. Monetary support has pushed the Fed's balance sheet to record levels, and solid fiscal spending has also pushed up government debt. Both of these may constitute the ultimate risk to the value of the US dollar and may increase the attractiveness of other currencies. "All the fiat currency substitutes that have undergone significant corrections in the recent past are now in a better position, able to cope with the final reduction and gradual slowdown in the growth of the money supply, rather than setting new highs one after another" Gayeski said. Both Bitcoin and gold have experienced significant volatility this year, and this trend began with a debate about whether Bitcoin is attracting demand from the gold market. Bitcoin soared to an all-time high of nearly 65,000 USD in April and then fell sharply. The current price is around 36,000 USD. At the same time, the price of gold once fell into a bear market in March but then reversed the trend and erased the losses so far this year. Major Wall Street banks disagree on the relative advantages of these two assets-Citigroup Inc. said that gold is "losing its luster" relative to cryptocurrencies. In contrast, Goldman Sachs Group Inc. said, These two assets can coexist. Tesla (Tesla Inc.) boss Elon Musk (Elon Musk) released several tweets this year, causing Bitcoin price fluctuations. He stated in May that he chose to support cryptocurrencies compared to fiat or paper currencies. According to Gayeski, gold, which hit an all-time high of over US$2,075 per ounce last year, has now bottomed out. He believes that most of the concerns in the market about reducing the size of bond purchases have disappeared. Even if it is announced, the Fed will not start to reduce the size of bond purchases until 2022. "In the future, the possibility that the price of gold will continue to rise is quite high, and it will set a new high next year," Gayeski said. Even if signs of economic recovery continue to appear, the Fed is still buying US$120 billion in Treasury bonds and mortgage-backed securities every month, and its balance sheet has soared to US$8 trillion, accounting for about one-third of GDP. This move may increase US Treasury yields and the dollar's status and weaken the attractiveness of gold, but the current discussion on the gradual reduction of this support is coming to an end. SkyBridge has a small amount of exposure to a gold miner, so it also benefits from rising gold prices. However, its primary risk exposure is the US cash flow generation strategy, supported by tangible assets, bad corporate credit, and convertible bond arbitrage. In addition, SkyBridge's Bitcoin fund has risen 51.2% from its establishment in December last year to June 1st this year. SkyBridge founder Anthony Scaramucci has partnered with First Trust Advisors to set up an exchange-traded fund (ETF), which plans to buy and sell Bitcoin. Gayeski expects that the US Securities and Exchange Commission (SEC) will approve the product in the fourth quarter of 2021 or the first quarter of next year. "The only reason why we exist as professionals are to find interesting ways to generate attractive non-correlated returns, but also to have compelling risk-reward combinations." Gayeski said, "We are in fiat currencies such as Bitcoin. Has a small but significant position in its alternatives, which magnifies the strategic composition of our broader portfolio."
0 Comments
Leave a Reply. |
Sophie
Share various useful investment information for reference only. Archives
January 2022
Categories |