Billionaire Finance Manager Bill Gross Says Bitcoin, Blockchain May Counter Central Banks

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by Tatsiana Yablonskaya · 3 min read
Billionaire Finance Manager Bill Gross Says Bitcoin, Blockchain May Counter Central Banks

According to Gross, bitcoin is more attractive for investors comparing to the traditional financial sphere.

We have heard many times that bitcoin is an attractive storage of wealth for investors. However, hearing that from a billionaire is much more convincing.

Billionaire Bill Gross, the financial manager who runs the $1.5 billion Janus Global Unconstrained Bond Fund, states that bitcoin is an example of a new innovation that will see the current financial infrastructure governed by central banks challenged, as the current negative/zero interest rates threaten capitalism itself.

Bill Gross has released an investment outlook letter where he emphasized bitcoin while delivered a damning verdict on the manner in which the central banking system is administered. He predicts that investors will sooner or later get tired of the standard financial sphere that offers near zero returns on their money. It is time to take a closer look on less risky alternatives like bitcoin to appreciate the difference between the cryptocurrency and traditional investments that are governed by a system of fiat cash.

“Bitcoin and privately agreed upon block chain technologies amongst a small set of global banks, are just a few examples of attempts to stabilize the value of their current assets in future purchasing power terms”, Gross says.

Gross compares central bankers and the financial industry with casino gamblers who “double down on bets despite losing while wagering on an unlimited supply of cash generated by central banks.” Central bankers seek to promote economic growth and restore stability, while the (bloated) asset market will eventually see wealth trickle down to the masses.

“An absurd example of this would be to triple your bet if you’ve lost 3 times in a row, and if you lose that, to quadruple your bet and so on,” writes Gross.

The billionaire states that modern financial markets resemble Vegas/Macau/Monte Carlo casinos, where an unlimited supply of credit generated by central banks can successfully reflate global economies and reinvigorate nominal GDP growth to lower but acceptable norms in today’s highly levered world.

The letter concludes: “Central bankers have fostered a casino like atmosphere where savers/investors are presented with a Hobson’s Choice, or perhaps a more damaging Sophie’s Choice of participating (or not) in markets previously beyond prior imagination. Investors/savers are now scrappin’ like mongrel dogs for tidbits of return at the zero bound.”

Gross insists that it cannot end well.

This weak, one more internet entrepreneur, Kim Dotcom, predicted the bitcoin price to soar to $2000 in the next two years. He connects the possible rise with the launch of MegaUpload 2.0 and BitCache.

Bitcoin News, Blockchain News, Cryptocurrency news, News
Tatsiana Yablonskaya

Taking strong interest in blockchain, cryptocurrencies, and IoT, Tatsiana Yablonskaya got deep understanding of the emerging techs believing in their potential to drive the future.

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