Hedge Fund Manager Doesn’t Have Faith in Bitcoin, Recommends Gold Instead

Hedge fund manager Paul Singer is reportedly “shocked” by bitcoin’s increase in price and rise in popularity, according to a CNBC report.

In a letter to investors at the $23.3 billion Elliott Management firm, Singer advised investors to look into gold if they were interested in an alternative currency:

“If you want an alternative currency, check out gold. It has stood the test of thousands of years as a store of value and medium of exchange,” he wrote.

“Better yet, it is not just a computer entry in the ether somewhere, and it is currently available at a good price. Bitcoin and its relatives represent an understandable impulse (anti-big-government, pro-freedom, pro-modernity), but we do not see how it actually survives. At least with gold you have to work really hard to dig the stuff up.”

Singer seemingly doesn’t see the potential in the digital currency whatsoever, but sees gold gaining popularity moving forward. He does, however, say that he will continue to watch the digital currency’s movement:

“There is no more reason to believe that bitcoin will stand the test of time than that governments will protect the value of government-created money, although bitcoin is newer and we always look at babies with hope.” (news via USAToday)

What do you think about Singer’s statements?