Bill Gross Says Bitcoin, Blockchain May Counter Central Banks

Fund manager reiterates criticism of the Fed, BOJ and ECB Global Unconstrained Bond Fund has gained about 5% this year New financial technologies such as bitcoin may become increasingly attractive to investors as a protection against central bank low- and negative-interest-rate policies that threaten capitalism, according to billionaire bond manager Bill Gross.
Policies by the Federal Reserve, Bank of Japan and European Central Bank are destroying historical business models that foster savings, investment and economic growth, Gross, who runs the $1.5 billion Janus Global Unconstrained Bond Fund, said in an October investment outlook released Tuesday. He said that as investors lose faith in the system, they will increasingly seek havens.
‘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,’ he wrote. ‘Gold would be another example — historic relic that it is. In any case, the current system is beginning to be challenged.’

This post was published at Bloomberg on October 4, 2016 -.