Raw materials in this article
Forex in this article
• Bill Gross thinks the crypto market is a “bubble”
• Called for an alternative to the US dollar
• No understanding of the NFT trend
Investor Bill Gross is no stranger to the financial markets. In the 1970s he founded the investment company PIMCO together with Jim Muzzy and Bill Podlich, but left the Allianz subsidiary in 2014 due to disagreements with the top management at the time. He then worked for the Janus Henderson fund company, but according to his own statements, gave up the job in 2019.
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Bill Gross: Bitcoin is not an alternative to fiat money and gold
Initially, the market expert was still confident about the crypto veteran Bitcoin and predicted a sharp rise in the price due to the limited supply of the cyber currency. However, he considered it unlikely that the coin would be used as an alternative to fiat currencies or gold, as he told Bloomberg Television in 2017. “It’s not really a currency alternative at the moment,” said the stock market expert. “Buying a shopping bag of groceries at the supermarket is going to be a bit difficult.” According to the market portal “Benzinga”, Gross then shared a quote from investor Jennifer Zhu Scott via Twitter the following year. Accordingly, the entrepreneur described Bitcoin at the World Economic Forum in Davos as a “lousy currency” that is not suitable for payments.
“I think Bitcoin is a very lousy currency, and very lousy for payments. I don’t think Bitcoin is disrupting currency, or money, I think Bitcoin is disrupting gold. If you think about what gold is doing as a reserve today, Bitcoin can do that better..” Jennifer Zhu Scott #WEF18 pic.twitter.com/oWIj8GxsR8
– Bill Gross (@Bill_Gross) January 25, 2018
Bitcoin investment despite critical attitude
Despite his critical stance on the internet coin, Gross appears invested in bitcoin, as he recently admitted to CNBC host Brian Sullivan. Nevertheless, he was not completely convinced of the trend towards cryptocurrencies. “I just believe that the crypto coins are a bubble,” said the investment expert. Nevertheless, he assumes that when this bubble bursts, there will be “survivors” who will also be able to prove themselves afterwards. “I believe we need an alternative to the US dollar, as we’ve seen over the last week or two, and there will be multiple survivors, and I’m somewhat invested in bitcoin,” Gross continued. According to “The Street”, he did not specify how many units of the Internet currency he received.
NFTs are not supposed to be among the crypto winners
In addition, the PIMCO co-founder also commented on the current NFT trend. The demand for digital collectibles is constantly increasing and more and more large corporations such as Disney, adidas and eBay are expanding their involvement in this area. However, Gross himself does not see non-fungible tokens on the winning side of the crypto industry. “The Phenomenon of NFTs [ ] reminds me of the time when my children collected beanie babies,” says the entrepreneur in an interview.
Editorial office finanzen.net
Image sources: Jaruwan Jaiyangyuen / Shutterstock.com, Figge Photography/Janus Capital Group