J. Kyle Bass, the Founder and Chief Investment Officer (CIO) of Dallas-based asset management firm Hayman Capital Management, says that he expects “explosive move higher” from Bitcoin, silver, and gold.
Yesterday (July 21), Bass sent out the following tweet to express how feels about Bitcoin, silver, and gold in view of all the “money printing” being done by central banks around the world:
Silver, Gold, Bitcoin, etc all look to be ready to make explosive moves higher given the sheer amount of money printing going on around the world. Here is a chart or front-month silver going back 10 years. pic.twitter.com/i9kHa9TVmi
— 🇺🇸Kyle Bass🇺🇸 (@Jkylebass) July 21, 2020
As you might expect, famous gold bug Peter Schiff, who is one of Bitcoin’s harshest critics, got triggered by this bullish outlook on Bitcoin, and felt compelled to send out the following reply:
I agree with you on #silver and #gold, but there's nothing about the #Bitcoin chart that suggests a breakout is coming. What are you looking at? The failure of Bitcoin to rally with gold and silver is a warning that it's headed lower, which confirms its bearish technical pattern.
— Peter Schiff (@PeterSchiff) July 21, 2020
Back in October 2017, during an interview with Bloomberg Television, Bass was asked about his thoughts on cryptoassets in general and Bitcoin in particular. He replied:
“Bitcoin — early on, I summarily dismissed Bitcoin and I shouldn’t have… Truthfully, I don’t understand the depth of the algorithms, the technology, and the fundamental foundation of Bitcoin, I didn’t understand.
“I spent a lot of time trying to understand that in the last six months, and I believe that the digital asset class of cryptocurrency is a real asset class, but in terms of how the world views digital currencies, when you look at global cash positions today given global QE, they’re not north of 110% of global GDP.
“So we’re talking about almost a hundred trillion dollars worth of cash in the world. That’s never happened before in world history.
“And so when I think about inflation, you’re starting to see wages move, you’re starting to see the price of all goods and services move… the thing that’s been really deflationary in the globe has been technology. It’s been a very positive deflationary force and I think the technological deflation has played out…
“The collective value cryptocurrencies a little over a hundred billion dollars today. Global M2 — global cash — it’s like 80 trillion to a hundred trillion dollars. So what’s a hundred billion dollars? The question is, what’s it worth? And as a store value, a medium of exchange, and other currency, I don’t think there’s any true institutional investor has any money in Bitcoin.
“I know some have a little bit, you know, they have nominal amounts invested, but I think it will be an asset class that will work over time. I’m not sure how to value it yet. I really have no idea…
“I think a whole bunch of people are gonna lose a lot of money… these ICOs, you can see a bunch of them go completely broke, a bunch of them are frauds, and that’s gonna be problematic for all the people that just rushed in, and so I I feel like it’s a bit of a mania at the moment, but I think in the long term it’s a viable asset class.”
Bass said that his firm started looking at Bitcoin when its price first reached around $2300, but back then, they were not able to find a suitable qualified custodian. Bass also said that he could see crypto’s total market cap reaching a trillion dollars.
As for gold and silver, Bloomberg reported on Monday (July 20) that, according to a report by Citigroup analysts, it is “only a matter of time” before the bullish sentiment drives the price of gold to a new all-time high:
“Nominal gold prices have already posted fresh records in every other G-10 and major emerging market currency this year…”
Apparently, Citigroup’s report also said that the interest in good stores of value should also benefit silver, which reached a three-year high on Monday. Citigroup expects the price of silver to reach $25 in the next six to twelve months, but Citigroup can see the price going as high as $30.
Bloomberg’s report went on to say:
“Citigroup is among a long line of market watchers in predicting bullion will either test or top its long-standing record as the resurgence of coronavirus cases in several parts of the world point to a prolonged and uneven global economic recovery.
“Spot gold has surged 19% this year to the highest since 2011 as the pandemic drove investors to havens, while easier monetary policy and other measures to shore up economies also supported demand.”
As for gold, its all-time high price is $1,921.17, which was set in 2011. At the time of writing, gold and silver are trading around $1,858 and $21.95 respectively.
Schiff, who is the CEO of Euro Pacific Capital, a full-service, registered broker/dealer specializing in foreign markets and securities, and founder and Chairman of SchiffGold, a full-service, discount precious metals dealer, is bullish on both silver and gold, and says that we should not be surprised that the price of silver is surging and that the real mystery is why this rally took so long to arrive:
People are asking why the silver price is up so much today. The real question is why is the price still so low and what took it so long to rise? Instead of wondering why the price is rising, just buy it now before the price goes much higher. We sell #silver at @SchiffGold too.
— Peter Schiff (@PeterSchiff) July 21, 2020
But what about Bitcoin, an asset which is seen by many people in the crypto community as the best store of value? How high could its price go?
Well, Binance Co-Founder and CEO Changpeng Zhao (aka “CZ”) said in an interview with YouTube channel “Altcoin Daily” published earlier today that that the price of Bitcoin would eventually reach a million dollars.