The U.S. Federal Reserve and the rise of â€œzombie companiesâ€ is prompting investors scramble to hedge against inflation using bitcoin and gold.
Thatâ€™s according to Mark Yusko, founder and CEO of investment firm Morgan Creek Capital Management, who spoke with CNBCâ€™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 â€œponzi finance schemeâ€ and saying their inability to repay debt, default or restructure meant the â€œonly choiceâ€ left for the Fed and other authorities is to devalue the currency.
That it is â€œexactlyâ€ what the U.S. central bank has been doing, alongside the central banks of Europe and Japan. â€œTheyâ€™re going to continue to do that,â€ he said.
As a result, bitcoin and gold have been doing â€œextremely well,â€ according to Yusko. â€œBefore peopleâ€™s eyes, youâ€™re having your wealth stolen through inflation.â€
â€œMoney is being devalued. Over the last three years, stocks are up about 6% a year â€“ not really that great,â€ he said. â€œBut if you denominate in gold instead of dollars theyâ€™re down 44%; if you denominate in bitcoin itâ€™s way worse.â€