Billionaire Ray Dalio says that bitcoin is like a digital version of gold, but he values the precious metal higher. He said so in an interview with CNBC.
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\”If you put a pistol to my head and told me you could keep only one thing, I would choose gold,\” Dalio said.
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Earlier, the founder of Bridgewater Associates, who had been outspoken about the prospects of cryptocurrency, in May 2021 said that he had invested an undisclosed amount in it.
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\”I own a very small amount of bitcoin. I\’m not a big holder. There are certain assets you want to own to diversify a portfolio, and bitcoin is something like digital gold,\” Dalio explained.
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However, physical gold remains his preferred hedge against inflation due to its long history as a store of value. Gold can be stored and converted into cash at a price relatively close to the purchase price. Dalio worries about the high volatility of cryptocurrency.
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There is a fairly high chance that the U.S. government will ban bitcoin. In March, he assessed the likelihood of such an outcome as high.
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Regarding portfolio diversification, he noted that these investments need to be continually reassessed, and one should avoid buying more of an asset such as cryptocurrency merely because it has performed well for a stretch.
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Back in January 2020, the billionaire said that the volatile bitcoin does not function as money. In November Dalio added that the asset will never be able to replace gold, because monetary authorities will strangle it.
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In December of the same year, the founder of Bridgewater Associates changed his stance, characterizing bitcoin as ‘interesting’ an alternative to gold.
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