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Ray Dalio likes Bitcoin but prefers gold above it

source-logo  thecoinrepublic.com 05 August 2021 12:27, UTC
  • Ray Dalio, a hedge fund manager, says he’s still optimistic about Bitcoin but prefers gold
  • Dalio has been a long-term gold bull, investing more than $400 million in gold in the second quarter of last year through his Bridgewater hedge fund
  • Bitcoin, in Dalio’s opinion, has a reasonable probability of being prohibited by the federal government. By and large, he doesn’t really know if Bitcoin is going to go up or down, he says, adding that he still wants Bitcoin in his portfolio for diversity

Ray Dalio, a hedge fund manager, says he’s still optimistic about Bitcoin but prefers gold. On August 4, the billionaire investor acknowledged holding a very tiny quantity of Bitcoin but stated that if he had to pick between the two, he would prefer gold. If one held a pistol to his head and said, he can only have one, he would say no. He would go for gold. However, he went on to say that he sees Bitcoin as digital gold and that it is still a good method to diversify. He explained that there are few assets you want to hold to diversify your portfolio, and Bitcoin is like digital gold. Dalio has been a long-term gold bull, investing more than $400 million in gold in the second quarter of last year through his Bridgewater hedge fund. He stated in 2019 that adding gold to a portfolio may help balance it since it is both risk-reducing and return-enhancing.

Dalio likes it because of its store of value qualities, which he sees as a natural inflation hedge. Central banks now possess more than 35,000 metric tonnes of gold, accounting for about a quarter of all gold ever produced. Dalio has already cautioned about the possibility of crypto-asset regulation and possibly a prohibition in the United States, similar to what happened with gold ownership in the 1930s. 

Bitcoin, in Dalio’s opinion, has a reasonable probability of being prohibited by the federal government. By and large, he doesn’t really know if Bitcoin is going to go up or down, he says, adding that he still wants Bitcoin in his portfolio for diversity. He could make a case for both sides. During an interview at the Consensus crypto conference in May, he indicated that he would prefer to buy BTC over bonds.

Gold is currently priced at $1,810 per ounce, down 4.4 percent since the beginning of the year. 

Bitcoin, on the other hand, is up 36% in the same time frame, trading at $39,360, according to CoinGecko. Marc Andreessen, a venture investor, is another billionaire who has recently expressed interest in Bitcoin. BTC was described as one of the most beautiful things he had ever seen and a fundamental technical breakthrough by Andreessen Horowitz’s co-founder in a new interview with Bloomberg on Tuesday. 

However, according to the article, he was more excited about the decentralized structure on which it is based. Many of the best individuals in computer science are moving into this sector, he said, adding that it offered a new sort of financial system in which people may establish trust connections in an untrustworthy environment.

thecoinrepublic.com