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Fiat Debasement Will Make Institutions Allocate to Bitcoin: Dan Tapiero

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Sun, 08/30/2020 - 11:47
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Alex Dovbnya
Global macro investor Dan Tapiero claims institutions will turn to Bitcoin after gold
Fiat Debasement Will Make Institutions Allocate to Bitcoin: Dan Tapiero
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Veteran macro investor Dan Tapiero claims that dollar debasement fears will eventually drive institutions to Bitcoin given that they are already diving into gold in his latest tweet

The two rivaling assets have been trading in tandem over the past month as investors are feverishly seeking safe havens.

A debasement hedge 

Tapiero’s bullish comment is related to the news about the Ohio Police & Fire Pension Fund (OP&F) adding a five percent gold allocation for diversifying its portfolio.  

With this move, the $16 bln wants to hedge itself against inflation that is widely expected to make a loud comeback due to the global recession.

The economic uncertainty, coupled with low interest rates and enormous monetary stimulus, recently pushed the lustrous metal to a record high of $2,089 in early August.  

Gold
image by tradingview.com

Despite dismissing gold in the past, billionaire Warren Buffett changed his tune this month by buying 21 mln shares of mining company Barrick Gold.

Goldman's Jeff Currie recently called gold “a hedge against debasement” during his appearance on CNBC:

“The way we like to describe gold is it’s a hedge against debasement.”      

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Former Coinbase CTO Balaji S. Srinivasan Says Space Gold Mining Might Benefit Bitcoin

Bitcoin has the Midas touch

As reported by U.Today, the correlation between Bitcoin and gold hit a yearly high of 67.1 percent earlier this August. 

With major hedge funds dipping their toes into the bellwether cryptocurrency, BTC is gradually turning into a macro-sensitive asset, as noted by Bloomberg’s Joe Weisenthal:

“I think one of the surprising things for me is the degree to which Bitcoin is becoming a macro-sensitive financial asset. Look how tight it is with gold today.”

As the U.S. Federal Reserve is striving to create more inflation, more companies could follow MicroStrategy’s suit by adopting Bitcoin as their reserve asset for diversification purposes. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.