As global financial markets and economies continue to grapple with high levels of uncertainty, one expert says that Bitcoin may be the best place for investors to park their capital.
Jim Thorne, chief market strategist at Wellington-Altus Private Wealth, told BNN Bloomberg in a Friday interview that as the global economy slows and interest rates fall, investors should be looking to get exposure to secular growth trends like cryptocurrencies and artificial intelligence (AI).
“In this type of environment, if we use history as a guide… Bitcoin works really well here, and you don’t really want to have a large exposure to cyclicality. That’s what worked the last time we went through something like this,” he said.
“If you’re looking at a rank order, it would be Bitcoin, then the Nasdaq 100, then the S&P 500, then the TSX.” Bitcoin was down more than three per cent in early afternoon trading on Friday.
Thorne’s comments came less than a day after U.S. President Donald Trump signed an executive order to establish a “Strategic Bitcoin Reserve,” fulfilling one of his most anticipated campaign promises.
The creation of the reserve makes Bitcoin, the world’s largest cryptocurrency, “like digital gold,” Thorne argued.
“There’s only 21 million of it. In a world where you’re basically going to reflate and have governments spending, history says you want to have exposure to it, so I would suggest clients look at adding it to their portfolio,” he said.
“And if you don’t want to have it, that’s fine, but just be aware that we’re in a bull run here and you should consider it.”
