While speaking on a CNBC’s Squawk Box show, Mark Mobius expressed an opinion that Bitcoin, being the most attractive on the crypto market, would look even more so if it were backed by gold. The latter, he believes, remains a safe haven in the market at the moment.
Mobius says just faith in BTC is not enough
While answering the question of the TV anchor, Mobius stated that a whole generation of people believes in the Internet and now in blockchain and they trust DLT to back cryptocurrencies. He pointed out that since fiat money, such as USD, is not backed by gold anymore, it is also backed by people’s trust in the power of their government.
Still, he stated that if Bitcoin fans take a closer look at what their currency is backed by (by nothing, he basically meant) they might realize that this is quite a risky situation.
In gold we trust, states Mobius
Now that gold has hit a 6-year high in price and many central banks are carrying out quantitative easing programs (printing cash, basically), many from the old guard of investors will turn their focus of attention towards gold.
Anthony Pompliano’s opposite view
However, an outstanding investor from a newer generation, Anthony Pompliano, believes that in this situation it is reasonable to buy not gold but Bitcoin.
In his numerous interviews and talks on CNBC and on his Twitter page Pompliano tries to convince the audience that Bitcoin is getting more and more exposure to institutional investors these days.
Once he stated that nowadays it is irresponsible for a financial institution not to have Bitcoin in its portfolio.
Bitcoin, he says, will become more and more popular among institutions and the BTC price is going to rise in the short term, due to the growing interest and the halving expected in May 2020.