Could A Rate Cut See Demand For BTC & Gold Boom?
cryptolove last edited by Reward
The market fund manager and founder of Mobius Capital Partners LP, Mark Mobius recently took part in an interview with BNN Bloomberg where he said that demand for cryptocurrencies will increase and boost the demand for gold owing to the imminent interest rates cuts by central banks. Going off this, the founder has unintentionally made a bullish prediction on Bitcoin.
Mobius referred to cryptocurrencies as “Psycho Currencies” because they are backed by the faith in the people. He asserted that these cryptocurrencies will increase demand for traditional hard assets like gold and continues to advise investors to have at least 10 percent gold button in their portfolios.
“You have all these new currencies coming into play. I call them psycho currencies because it’s a matter of faith whether you believe in bitcoin or any other cyber currencies. And I think with the rise of that, there’s going to be a demand for real hard assets and that includes gold because gold can play a role not only as an asset but as a currency.”
Even so, we can take away from this that Mobius’ views on bitcoin are slowly becoming less intense. Back in May last year, Hobius referred to the flagship cryptocurrency as a real fraud and forecasting death for BTC during the so-called ‘crypto winter’. More recently though in July, he revealed that he invested in Bitcoin if its growth continued.
This month, we saw the gold reach a six-year high with the anticipation of interest rate cuts by the US Federal Reserve other central banks but Mobius expects these price to rise in the near future due to the increased money supply.
“Gold’s long-term prospect is up, up and up, and the reason why I say that is money supply is up, up and up. I think you have to be buying at any level, frankly. With the efforts by central banks to lower interest rates, they’re going to be printing like crazy.”
During a time where the Federal Reserve and central banks increase the money supply on an international level, Mobius predicts that this will increase the price of gold.