Morgan Creek CEO Says Bitcoin Doing 'Extremely Well' Due to Fed Reserve's Dollar Devaluation
The U.S. Federal Reserve and the rise of "zombie companies" is prompting investors scramble to hedge against inflation using bitcoin and gold.
That's according to Mark Yusko, founder and CEO of investment firm Morgan Creek Capital Management, who spoke with CNBC's Fast Money host Melissa Lee on Thursday.
Yusko took aim at zombie companies (those that need bailouts at times of financial stress to stay in operation), calling them a "Ponzi finance scheme" and saying their inability to repay debt, default or restructure meant the "only choice" left for the Federal Reserve and other authorities is to devalue the currency.
That it is "exactly" what the U.S. central bank has been doing, alongside the central banks of Europe and Japan. "They're going to continue to do that," he said.
As a result, bitcoin and gold have been doing "extremely well," according to Yusko. "Before people's eyes, you're having your wealth stolen through inflation."
"Money is being devalued. Over the last three years, stocks are up about 6% a year – not really that great," he said. "But if you denominate in gold instead of dollars they're down 44%; if you denominate in bitcoin it's way worse."
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
