A $7.5 billion hedge fund manager prefers this asset over gold!

Chief investment officer at SkyBridge Capital hedge fund Troy Gasky expects gold to rise to new highs next year, but investors looking for alternatives to the currency with global debt should look to Bitcoin.

“Both are likely to rise even as the Federal Reserve moves to reduce asset purchases,” said Ghesky, who manages the $7.5 billion SkyBridge fund.

“We will stick with bitcoin and cryptocurrencies because we just think there is more upside,” he added. He explained that Bitcoin will experience greater volatility than gold will.

Investors are tracking the Fed’s comments as inflation rises, and policy makers move closer to scaling back the massive asset purchases that rescued the economy from the disruptions caused by the pandemic.

Monetary support has pushed the Federal Reserve’s balance sheet to a record high, while strong fiscal spending has boosted government debt. Both could pose a risk to the value of the dollar, which could polish the attractiveness of the alternatives.

Gaske also said, “All the fiat currency alternatives — all of which have gone through fairly recent fundamental corrections — are in a much better place now to deal with this gradual slowdown in money supply growth than they were, because they were making higher highs after highs.” It was reported by Bloomberg.

Bitcoin and gold have seen big swings this year, which has unfolded amid a debate over whether the cryptocurrency is pulling demand away from gold. Bitcoin rose to a record high near $65,000 in April, before plummeting. While it was recently traded around the $36000 level.

Meanwhile, gold came close to plunging into a bear market in March, but reversed course to erase year-to-date losses.

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Leading Wall Street banks are divided over the relative merits of this asset pair, with Citigroup saying that gold is “losing its luster” against cryptocurrencies, while Goldman Sachs made clear that the two can coexist.

According to Ghesky, gold, which hit a record last year above $2,075 an ounce, has gained ground, ending much of the market’s fears.

He predicted that the probability of the continuation of the bullish trend for gold would remain high, with achieving new records next year.

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