Bill Gross: Central Banks Are Pushing Investors to Bitcoin

Risky markets and incapable central banks could drive investors into the arms of bitcoin, asset manager Bill Gross opined in a recent note.

AccessTimeIconOct 4, 2016 at 6:57 p.m. UTC
Updated Sep 11, 2021 at 12:31 p.m. UTC

Risky markets and an incapable central banking culture could drive investors into the arms of bitcoin and gold, billionaire asset manager Bill Gross opined in a recent note to investors.

Gross, who founded the Pacific Investment Management Co and now spearheads the Janus Global Unconstrained Bond Fund, dubbed markets a "casino", and said that low returns in an environment of zero-cost debt could ultimately push some investors to take their money elsewhere – thus risking further destabilization.

He wrote in a note to Janus investors, published today:

"Bitcoin and privately agreed upon blockchain technologies amongst a small set of global banks, are just a few examples of attempts to stabilize the value of their current assets in future purchasing power terms. Gold would be another example — historic relic that it is. In any case, the current system is beginning to be challenged."

What that outflow might look like, Gross didn't elaborate on. However, he opined that markets are in a very risky position and that "it is capitalism itself that is threatened" by current central bank policies, which since the 2008 financial panic have pursued a strategy of low interest rates and the monetization of debt.

"Investors/savers are now scrappin' like mongrel dogs for tidbits of return at the zero bound," Gross wrote, concluding:

"This cannot end well."

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Read more about