Jefferies sells Gold to buy Bitcoin

[Poker Player]

It is yet another example that Bitcoin is the best safe-haven asset and the best hedge against inflation, managers start acting as if it were:

Jefferies’ Chris Wood boosts Bitcoin holdings to 10% at the expense of gold.

"The Global Head of Equity at Jefferies (NYSE:JEF), Christopher Wood, has joined the group of investors that are ditching gold for more Bitcoin exposure. He has reduced his position in gold to expand his investment in the world’s largest cryptocurrency.

This isn’t the first time Wood is forfeiting gold for the sake of Bitcoin. In December 2020, he cut down the gold stock in his long-only asset allocation for USD-based pension funds from 50% to 45%.

Interestingly, Wood has not always been a fan of the digital asset. He had carefully avoided crypto investments in the past due to security concerns. However, he has had a change of heart just like most institutional players of recent."

I think this news is pretty bullish. We have another financial manager who just a few years ago did not believe in Bitcoin and now has come to consider it better than gold, also putting his money where his mouth is: progressively increasing exposure to Bitcoin at the expense of gold.

I think in the long term gold will continue to have value mainly as costume jewelry, but as a store of value Bitcoin is going to eat into it.

[Charles-Tim]

I think this news is pretty bullish. We have another financial manager who just a few years ago did not believe in Bitcoin and now has come to consider it better than gold, also putting his money where his mouth is: progressively increasing exposure to Bitcoin at the expense of gold.

This is just the beginning, many people that did not wanted to invest in bitcoin before will have no option again when they see their other investors investing in bitcoin, this is just one of the bitcoin adoption process, it is digital and the world for conveniences are going more into digital era. Bitcoin is getting stronger, many investors believed before that bitcoin was not secure and safe enough, but its blockchain had proved otherwise also with the increasing hashrates generated by miners that is making it stronger. The blockchain is perfect enough, many other investors will be convinced and later will also have no option that to go for bitcoin.

With the wealth distribution in the world and fiat devaluation in long term, bitcoin will follow uptrends, retrace and follow price uptrends again and again in a way there will still be series of all-time-high.

[The Sceptical Chymist]

It is yet another example that Bitcoin is the best safe-haven asset and the best hedge against inflation
<snip>
I think in the long term gold will continue to have value mainly as costume jewelry, but as a store of value Bitcoin is going to eat into it.

I disagree with you about the first part, because I don't and never have believed that bitcoin is any sort of safe-haven asset, nor will it be anytime soon.  If there was a cryptocurrency that tracked the real value of the USD or whatever fiat currency, i.e., adjusted its value constantly for inflation, then that would be a perfect substitute for gold--in fact, I think there is some kind of financial product that does exactly that (it's in the bond market if I'm not mistaken). 

But bitcoin?  It's volatility alone precludes it from providing safety against inflation or volatility in other markets.  And if it weren't so volatile, none of us would have fallen in love with it.

Gold is always going to be valuable as long as it's rare.  If Elon Musk or somebody else starts mining it on asteroids, just watch how fast the price drops.  Aluminum used to be considered a precious metal a long time ago, way before people figured out how to get it out of the ground and isolate it.  True fact, though it's too late at night for me to go digging for a reference.  Lol.

[Charles-Tim]

But bitcoin?  It's volatility alone precludes it from providing safety against inflation or volatility in other markets.  And if it weren't so volatile, none of us would have fallen in love with it.

Yes, that is true, bitcoin price is highly volatile and people still see bitcoin just as a speculative asset due to its high volatility. But how about long term, bitcoin has been performing than fiat. I may need to be corrected about this, I always think other assets are not used to determine if an asset is a stored of value other than comparing it to fiat like USD which are highly depreciative as a result of governmental control, the control that make fiat inflationary.

Although, bitcoin is seen as a speculative asset but I am thinking this will be in short term, that is why some people invested in it, panicked and sold it all because the price reduced few days or few weeks after buying it. Some people can speculate the price, wait for the fall, then buy just to have few or no loss at all immediately after buy and only experience increasing price of bitcoin at the time they invest.

But, yet, people that invested and the price falled, but left their bitcoin holding and never sold it still all gained, after the price retraced, it increased back and reach all-time-high. This is what has been happening ever since bitcoin was created. So this make me to have the conclusion that bitcoin may not be considered as a safe haven in short term, but it may be considered as safe haven in long term as its price in long term is always higher than the price in the past if compared to fiat.

Although, I get you point distinctly, bitcoin should not yet be compared to gold as a safe haven, its price is highly volatile.

[witcher_sense]

I disagree with you about the first part, because I don't and never have believed that bitcoin is any sort of safe-haven asset, nor will it be anytime soon.  If there was a cryptocurrency that tracked the real value of the USD or whatever fiat currency, i.e., adjusted its value constantly for inflation, then that would be a perfect substitute for gold--in fact, I think there is some kind of financial product that does exactly that (it's in the bond market if I'm not mistaken).  

But bitcoin?  It's volatility alone precludes it from providing safety against inflation or volatility in other markets.  And if it weren't so volatile, none of us would have fallen in love with it.

Gold is always going to be valuable as long as it's rare.  If Elon Musk or somebody else starts mining it on asteroids, just watch how fast the price drops.  Aluminum used to be considered a precious metal a long time ago, way before people figured out how to get it out of the ground and isolate it.  True fact, though it's too late at night for me to go digging for a reference.  Lol.

I disagree with your disagreement about bitcoin not being a safe haven, but everybody has the right to their own opinion. I'd like to talk about anti-inflationary cryptocurrency - a potential substitute for gold.

Evidently, we cannot create a cryptocurrency that would automatically be adjusting its value for inflation. There are multiple reasons why that won't happen.

First of all, there is no way to correctly estimate the rate of inflation. The consumer price index (CPI) with which to currently measure inflation is not an effective metric. The index takes into account the growth in prices of consumer goods, but it doesn't take into account the changes in the quality of those goods. The real inflation is thus always higher than a calculated one because, as we all know, the quality of consumer goods is getting worse and worse. And don't forget shrinkflation!

Secondly, the inflation rate varies considerably from one country to another. What country should we consider when adjusting the value of our anti-inflationary cryptocurrency? Argentina? Venezuela? The US? Should we create a separate cryptocurrency for each country?

Thirdly, personally, I am not aware of any effective algorithmic mechanisms that would allow a cryptocurrency to automatically adjust to real prices. Maybe, we should use a system of oracles that would be tracking prices but that makes the system too complex and vulnerable to attacks.

[Fortify]

It is yet another example that Bitcoin is the best safe-haven asset and the best hedge against inflation, managers start acting as if it were:

Jefferies’ Chris Wood boosts Bitcoin holdings to 10% at the expense of gold.

"The Global Head of Equity at Jefferies (NYSE:JEF), Christopher Wood, has joined the group of investors that are ditching gold for more Bitcoin exposure. He has reduced his position in gold to expand his investment in the world’s largest cryptocurrency.

This isn’t the first time Wood is forfeiting gold for the sake of Bitcoin. In December 2020, he cut down the gold stock in his long-only asset allocation for USD-based pension funds from 50% to 45%.

Interestingly, Wood has not always been a fan of the digital asset. He had carefully avoided crypto investments in the past due to security concerns. However, he has had a change of heart just like most institutional players of recent."

I think this news is pretty bullish. We have another financial manager who just a few years ago did not believe in Bitcoin and now has come to consider it better than gold, also putting his money where his mouth is: progressively increasing exposure to Bitcoin at the expense of gold.

I think in the long term gold will continue to have value mainly as costume jewelry, but as a store of value Bitcoin is going to eat into it.

It makes perfect sense really, before cryptocurrency existed Gold was a great hedge against inflation because the amount being pulled out of the ground was fairly small and consistent each year. However if the pandemic has taught me anything, it is that for a solo retail investor it was really hard to cash out when all the shops were shut down and I'm not sending lots of gold bullion by post. Right at the moment when I most needed to convert gold to cash, it became almost impossible due to lock downs and I possibly missed out on some stock market gains which is where the cash would have gone instead. Bitcoin is so much more versatile and accessible from anywhere with internet.

[Ucy]

I think moving to Bitcoin & abandoning the other should only be necessary to preserve value and continue to function during serious  crisis(esp global crisis) because of the anti-fragile nature of Bitcoin Network/System if it goes through enough stress test or something.
In a normal time when there is less global uncertainty I think Gold can still be used for things like that

[fiulpro]

This is an amazing news no doubt but what we must be worried about is :
Investors like these exiting at the first profit they make. This is something very important since they value profits and the market more than anything therefore personal concern for the whole crypto market is still due.
If anyone is capable of selling their assets and putting them into bitcoins then they should, this is honestly the right time, there haven't been a wrong time since bitcoins first emerged and at the same time we have seen the value of Bitcoins soaring high every single day.
On January 2021 the price was around 32k and now we are around 67k this is something not only impressive but astounding since all of this growth is during the pandemic. Therefore what are you waiting for ?
This is the right time to invest and the good thing is that the guy got to know before the time is not right. Hopefully with profits and investing the value of cryptocurrencies as a market and a fully functional community would be respected as well. Waiting to see more positive news from every sector.

[avikz]

Someone or some company selling of gold and buying bitcoin does not signify that bitcoin has become a safe heaven asset or better than gold. It entirely depends on the risk appetite of an individual or the company management.

It ia indeed a good news for the bitcoin market as it will boost demand and increase the cash flow in the market. It is great to see that more and more institutional investors are finding bitcoin as an investable asset. From the price perspective it is great and we all are going to be benefitted from it.

[Vaskiy]

People who are into gold investment, and avoided bitcoin in the past will reconsider and might move the funds from gold to bitcoin. In the past volatility was much into discussion when someone is suggested to make an investment on bitcoin. More people have started to move the funds towards bitcoin. I personally had an experience with gold investment.

I suggested my sister to make investment on bitcoin when the price per bitcoin is just $350. She ignored, and now with the entire gold investment she had made till date she won't be able to buy a complete bitcoin in today's price.

[Lucius]

I think this news is pretty bullish. We have another financial manager who just a few years ago did not believe in Bitcoin and now has come to consider it better than gold, also putting his money where his mouth is: progressively increasing exposure to Bitcoin at the expense of gold.

I have a good habit of always reading the article before giving my comment, and no one seems to have read the article (at least not to the end). One thing is pretty eye-catching, and I believe a lot of us here wouldn’t agree with that. Of course, we can only interpret his statement from a profit perspective, as the fact is that ETH achieved a rather impressive price from a single-digit figure in early 2017.

Meanwhile, Wood is yet to consider adding Ethereum to his portfolio despite his renewed stance on Bitcoin. The exec reiterated his previous position when it came to Ethereum, establishing that he had no plan to include ETH in any pension fund portfolio as it is not a “store of value” asset. However, he opined that the leading altcoin has the potential to outperform Bitcoin in the near future.

I think in the long term gold will continue to have value mainly as costume jewelry, but as a store of value Bitcoin is going to eat into it.

You may be right, but then we will need to find some replacement materials as a substitute for gold used in electronics, dentistry, medicine, or aerospace.

[sheenshane]

"However, he has had a change of heart just like most institutional players of recent."

Wow, it sounds good to me that there's someone who has been changed their heart and turned back into crypto as an enthusiast.  Let's hope that everyone will do the same as Jefferies did, maybe others will change too especially in the country of China that always keeps spreading FUD news.  This will trigger those who have hated Bitcoin to give allocation percentage on their portfolio when it comes to Bitcoin investment as they can see that there's true profit if you will invest in Bitcoin in a long run.

I think this news is pretty bullish.

Pretty sure and I smell that there could be another ATH coming.  Who's next?  It seems the adoption has been grower bigger.

[Gozie51]

Let's hope that everyone will do the same as Jefferies did,

It is a wrong statement or comment to believe that everyone will believe in bitcoin or buy into it but bitcoin is beyond the human adoption or individual, it is not in such level, it adoption is not for just individual. So whether it is Jefferies or Elon musk, bitcoin is for the chase. It is a slogan or regret later.

[hyudien]

I think this news is pretty bullish. We have another financial manager who just a few years ago did not believe in Bitcoin and now has come to consider it better than gold, also putting his money where his mouth is: progressively increasing exposure to Bitcoin at the expense of gold.

I have a good habit of always reading the article before giving my comment, and no one seems to have read the article (at least not to the end). One thing is pretty eye-catching, and I believe a lot of us here wouldn’t agree with that. Of course, we can only interpret his statement from a profit perspective, as the fact is that ETH achieved a rather impressive price from a single-digit figure in early 2017.

Digging deeper through the article, and I came across a statement that Wood still has no plans to include Ethereum in his portfolio. The statements are listed in the weekly notes

he would not place Ethereum in a retirement fund portfolio as it is not a store of value asset, but will likely continue to outperform bitcoin in the coming months.

IMO, this is like the beginning when he said he would not own Bitcoin and finally he was interested in transferring his finances in Gold to Bitcoin. Well for now, maybe he is not interested in getting into Ethereum, but he doesn't know if he will also be interested in adding Ethereum to his portfolio list. All decisions are subject to change at any time.

[dbc23]

It is yet another example that Bitcoin is the best safe-haven asset and the best hedge against inflation, managers start acting as if it were:

This shouldn't be an investment advice because the risk associated with the inflation could be as devastating as the present reward. Jefferies must have gone against his initial phobia for crypto after seeing a new ALHs and buying at this point is a bit riskier than anyother time in the Bitcoin Market because it's either the price surge higher or a devastating drop in price occur

[TheNineClub]

As optimistic for BTC future as this seems, I honestly just see it as serious investors diversifying their portfolio, as they have been doing for decades. I don't think they were ever anti-crypto in general, they were just dormant until things get going, and they are still early to the game. I mean, it's still a positive thing for BTC, but not really that big.

[arallmuus]

People who are into gold investment, and avoided bitcoin in the past will reconsider and might move the funds from gold to bitcoin.

In this case, its just 10% and thats pretty much considered as being speculative instead of being optimistic with bitcoin. We are literally in bullish scenario right now so its not really going to surprise me if some people move 10-30% of their asset from gold / property into bitcoin or cryptocurrency to enjoy some easy profit ( even 'monkey' could make some money trading crypto in bullish scenario )

Who's next?  It seems the adoption has been grower bigger.

Apple's CEO Tim Cook said that he owns cryptocurrency as well. Small chances that Apple might be looking on it as well

[TinaK]

It is yet another example that Bitcoin is the best safe-haven asset and the best hedge against inflation, managers start acting as if it were:

This shouldn't be an investment advice because the risk associated with the inflation could be as devastating as the present reward. Jefferies must have gone against his initial phobia for crypto after seeing a new ALHs and buying at this point is a bit riskier than anyother time in the Bitcoin Market because it's either the price surge higher or a devastating drop in price occur

It seems now Jefferies wants to gamble his money on crypto and he saw the opportunity on it rather than the gold. He is doing it right, and for sure he is aware of the possible risk of investing in bitcoin, and without thinking about it his goal is a safe haven. People are now was understand how bitcoin to make money in the future even if this is a hedge against inflation but people still looking into it and they have the right path I think.

I have a strong doubt that bitcoin will become more bullish this year.

[Hamphser]

It is yet another example that Bitcoin is the best safe-haven asset and the best hedge against inflation, managers start acting as if it were:

This shouldn't be an investment advice because the risk associated with the inflation could be as devastating as the present reward. Jefferies must have gone against his initial phobia for crypto after seeing a new ALHs and buying at this point is a bit riskier than anyother time in the Bitcoin Market because it's either the price surge higher or a devastating drop in price occur

It seems now Jefferies wants to gamble his money on crypto and he saw the opportunity on it rather than the gold. He is doing it right, and for sure he is aware of the possible risk of investing in bitcoin, and without thinking about it his goal is a safe haven. People are now was understand how bitcoin to make money in the future even if this is a hedge against inflation but people still looking into it and they have the right path I think.

I have a strong doubt that bitcoin will become more bullish this year.

There would be always that tendency on having change of minds or change of hearts when it comes to investment.   Cant really blamed them though

and at least they do realize about its true potential and able to mind off on wider scale because not all gold bugs would definitely be changing off their
hearts on their possession but well diversification at its finest would always be the next on line.

[Leviathan.007]

Selling an asset to buy another asset makes sense especially if you know about money management. Gold got a much more stable market and the price is usually stable, even if you have the average true range you will understand the range of market price for gold and that's completely obvious for anyone. On the other hand bitcoin, a generally crypto market is much riskier the price movement range or atr is way higher than gold, however in my own idea time after time the market is becoming more stable.