Bitcoin Isn’t A Good Competitor Against Gold: Ray Dalio

Bitcoin isn’t a good competitor against Gold as Ray Dalio thinks, but did say that BTC is a great hedge against inflation so let’s read more today in our latest Bitcoin news today.

In a recent interview with the Economic Times, the billionaire investor and founder of Bridgewater Associates, Ray Dalio noted the potential of digital assets especially BTC outlined the impressive performance over the past decade. Bitcoin isn’t a good competitor to gold said the 72-year-old American investor noted that BTC’s finite supply is similar to other universally accepted inflation hedges just like gold. However, he doesn’t see the central banks adopting BTC as a reserve asset because of issues of privacy and the ban of the asset in some countries:

“Still, there are issues with them. Transactions can be traced so privacy is an issue. They can be controlled, they can be shut down, and they can be made illegal which tends to tap in during times when they may be threats to the alternative currency. So, I don’t think they’ll be held as central bank reserves for various reasons.”

While Dalio think investors should have digital assets such as Bitcoin in their portfolio noted that gold does a better job at hedging against inflation. He urged that Bitcoin’s total marekt value is less than the one of Microsoft which makes it less desirable for storing the wealth compared to gold. He also did express optimism about the growth of the industry in the next 10 years:

“I think that the environment that we’re in is an environment in which there is a risk of political confiscation or any other forms of confiscation. I think gold does a better job but as I said, we’re into this new environment and that could include NFTs and all sorts of things. It’s a competitor but I think in terms of its qualities, not as good a competitor… But we’ll figure those things out. It will evolve over the next 5 to 10 years.”

The billionaire investor pointed out that because of the change in the glboal economic environment it will be wise for an investor to diversify their investment portfolios and commented that the investor should have gold, crypto, and other assets in the portfolio to enhance them against the inflation:

“I think it’s a mistake for anybody to have just one, such as picking a digital currency and not having any gold or just having gold and not having any digital currency.”

Dalio argued that people are giving too much attention to crypto after admitting that BTC prove itself in the 13 years of its existence.

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• Source: https://www.dcforecasts.com/bitcoin-news/bitcoin-isnt-a-good-competitor-against-gold-ray-dalio/