Following the announcement that the renowned Old Mutual Gold & Silver Fund will be investing funds in Bitcoin, RT’s Max Keiser says they’re a bit late to the party.
The American broadcaster is arguably one of Bitcoin’s biggest advocates and has been bullish on his stance and predictions for the cryptocurrency’s future.
Ned Naylor-Leyland, head of Old Mutual’s Gold & Silver fund, has been slow on the uptake of Bitcoin. With most of their investments in precious metals, the fund has decided to invest five percent of its portfolio in Bitcoin and will reinvest the profits back into the gold and silver markets.
Speaking in the latest episode of The Keiser Report, the host made a jibe about Naylor-Leyland’s about-turn in sentiment on Bitcoin:
“Ned is talking about Bitcoin effectively being gold, that it was designed to be gold. Now he’s invested in it, putting money to work in it.”
Keiser said the fund manager should have taken his advice years ago when the price was a fraction of what it is today:
“We’ve spoken to him many times about Bitcoin, he’s been reluctant and hesitant, resisted the idea that it’s gold 2.0. Now he’s been sucked up into the vortex, into that black hole that is Bitcoin.”
Keiser believes that more mainstream, institutional investors will be changing their tune on cryptocurrencies sooner rather than later.
“Now the old gold fund has become the new crypto-fund. Ned is now a convert, all these names that have been crypto skeptics will get sucked up and become converts – I guarantee it’s going to happen.”
Bitcoin like Moses, parting the ‘sea of derivatives’ for gold
Known for his animated and charismatic humor, Keiser believes Bitcoin is going to change the way gold is being traded on Wall Street. He hit out at short selling and manipulation which he insists is rife in current times:
“Bitcoin is helping gold by shattering the matrix of Wall Street that is incurring the naked short-selling and financial manipulation that is going on in the futures market of gold.”
Keiser believes this could lead to a surge in the gold price:
“We’re going to obliterate all the machinery that is killing the gold price. Bitcoin is like Moses, parting the sea of derivatives and through the gap, the gold price will finally get to two or three thousand dollars an ounce- thanks to Bitcoin.”
Bitcoin meets Aristotle’s definition of good money
Reflecting on Naylor-Leyland’s statement that Bitcoin will see the world “revert to sound money” as quoted by Bloomberg, Keiser goes back to Aristotle’s definition of money.
The Greek philosopher wrote that money must meet four characteristics. It must be durable, portable, divisible and have intrinsic value. Keiser says like gold, Bitcoin also meets those conditions:
“The condition of scarcity is the one that people have trouble with. They don’t understand how you can have digital scarcity. But that is the genius of the protocol, it creates for the first time in history digital scarcity that is scalable and immutable – it fulfills all the characteristics of money.”