Ray Dalio sees Bitcoin as an alternative to gold

Written by on 24. Dezember 2020 in Crypto

Ray Dalio sees Bitcoin as an alternative to gold – Bridgewater CIO sees potential in BTC and Co.

Bitcoin (BTC) and gold bars are more similar than expected. You can use them to protect your savings against inflation. On the picture you can see gold bars and Bitcoin coins.

The CIO of hedge fund Bridgewater Associates, Ray Dalio, who about a week ago expressed concern about the continued volatility and limited use of Bitcoin, has changed his mind about Bitcoin. Dalio has now stated that he believes Bitcoin is successfully proving by Bitcoin Era to be a strong gold alternative.

Bitcoin as an alternative to gold

In the last Ask Me Anything (AMA) round on Reddit, Dalio was asked whether Bitcoin was a good alternative to the financial imbalance created by US fiscal policy. The billionaire investor replied that Bitcoin has proven to be an attractive gold-like investment option over the last 10 years or so. He also pointed out that Bitcoin has both similarities and differences to gold.

I think that Bitcoin (and some other digital currencies) has established itself over the last 10 years as an interesting gold-like investment alternative. With similarities and differences to gold and other limited, mobile (as opposed to real estate) investments.

He further argued that Bitcoin and other Altcoins could contribute to gold as non-traditional assets. According to the former sceptic, it is important to diversify and hold some „of these assets (with limited supply, which are mobile and constitute a store of value)“, such as Bitcoin, gold and shares in his portfolio. Unfortunately, he noted that not many people do this.

Apart from that, Dalio still strongly prefers to hold such assets, which are secured and authorised by central banks and whose value can be held and exchanged when people try to buy something that BTC does not currently do. He would therefore still prefer gold to Bitcoin.

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Billionaire hedge fund manager Dalio has made a complete U-turn from his earlier statement. Just a few days ago, he had outlined three main difficulties with Bitcoin and other crypto-currencies. These are :

In his AMA on Reddit, he also expressed his views on various issues such as BTC, China’s leadership and his views on the US economy and the future of the world of work.

The comparison between gold and Bitcoin is not new. There are many conflicting opinions in connection with the narrative „BTC vs. Gold“. Peter Schiff believes that gold is inherently superior, while MicroStrategy’s CEO recently stated that Bitcoin is „a million times better“ than gold.

It is interesting to note that this comparison will always be questionable for some reasons. First, the value of Bitcoin does not depend on its traditional history of business use.

It lives both in the expected value of the online transactions conducted on its networks and in a sense of trust and hope of the people in the cryptospace, as well as in the dream of the cypherpunks that began in the late 1980s, decades before Bitcoin was even conceived.