- Owning gold may become illegal if central banks decide to control inflation due to COVID-19.
- The Bitcoin could be the biggest beneficiary of a world where gold is not intended for private property.
The Bitcoin could potentially gain ground on Wall Street as a picture painted by the head of the London-based Odey Asset Management, Crispin Odey. In an open letter to investors, Crispin warns that central banks around the world may decide to ban private ownership of gold as a means of controlling inflation in the context of the COVID-19 pandemic.
This decision is not new because, according to Odey, the American Federal Reserve adopted the measure in the 1930s. In doing so, the government forcibly owned the precious metal from the public at a price in order to revalue the US dollar.
Inflation is expected to increase between 5% and 15% over the next 15 months. Odey says that high inflation levels would significantly affect long-term maturing bonds as well as stock market growth. New stimulus packages are expected from citizens as the virus continues to spread around the world.
Odey also said that the only beneficiaries of inflation would be Bitcoin and gold, which is why investors are always buying more gold. However, Bitcoin is expected to survive the tough economic times, as it is unlikely to be confiscated. Odey advised investors to consider other gold refuge alternatives as its property could be banned.