The founder of the world’s largest Hedge fund, Ray Dalio, has changed his previous stance on Bitcoin. With years of doubts and criticism for cryptocurrency, investors are finally warming up to the digital asset. Since Bitcoin’s creation, critics have regarded the technology as unrealistic. They would soon fall apart since it’s in a ‘bubble.’ The entry of institutional investors silenced most critics, leading the growth and widespread adoption of the digital asset.
Why Dalio prefers gold to Bitcoin
The coin has continued to thrive and is presently valued within $19,400-$19,000 for a single BTC. The founder of Bridgewater Associates recently joined the league of critics who have started encouraging the adoption of the digital currency. The chairman, however, reported that he would not invest in the blockchain technology. Around 2017, the billionaire first took a discouraging evaluation on the digital asset. During the CNBC SQUAQK, he antagonized an opinion that suggests Bitcoin is a better asset when compared to gold. Dalio rejected the claim and said he doesn’t see the cryptocurrency as a good storage of wealth.
The Hedge fund expert criticized the currency’s volatility and suggested it wouldn’t make a suitable medium of exchange during the interview three years ago. His current stance today is encouraging the crypto community. During an Ask Me Anything session on Reddit, he compared the precious metal to the digital asset.
He seemed impressed with the current growth of digital assets and considered it a suitable alternative to gold. The billionaire saw the asset as a mobile investment. When asked if he would invest in crypto anytime soon, he still has a preference for gold than Bitcoin because of the acceptance gold has gained as a form of exchange in central banks.
Some similarities Bitcoin has with gold
Dalio declared that cryptocurrencies have established a market for themselves and were an exciting asset to watch out for. Many people have likened the qualities of gold to Bitcoin, and during the session, the founder compared their similarities and differences. He admitted that Bitcoin and gold are both scarce, which is a necessary quality most assets hold and are moveable. The assets can both be moved from one place to the other, unlike Real Estate, which is stationary.
The 71-year old suggested that Bitcoin could be used to diversify one’s asset class when looking at gold or other stores of wealth. He advised the diversification of one’s wealth and have different assets class in one’s portfolio. It’s surprising to see Dalio’s quick change in opinion when a few months ago, he mentioned some hurdles digital assets would face. The founder opined that future government regulations could stop cryptocurrency, their unstable prices and lack of platforms that take them as a payment option.
Dalio’s new comment has attracted support from the crypto community, and they see the asset falling into mainstream adoption with the new attention it is gaining. The new regulations on cryptocurrency is a hurdle the billionaire foresaw, following the new suggestion of the G7 for the regulation of the platform, and this has been causing some controversial opinions on numerous social media platforms.