Ray Dalio: Bitcoin lags gold in the race

Bitcoin serves as a good hedge against inflation but not a full substitute for gold. This view was presented by billionaire Ray Dalio in an interview with the Economic Times.

The founder of Bridgewater Associates acknowledged the likeness of the first cryptocurrency to the main precious metal with finite supply, but noted obstacles to its becoming a reserve asset for central banks.

“Transactions can be traced […]. They can be controlled, cancelled and made illegal,” Dalio said, without providing further explanation.

The billionaire also compared Bitcoin’s market capitalization to Microsoft’s and concluded that the first cryptocurrency “is less suited” for wealth preservation relative to gold.

Despite scepticism, Dalio acknowledged the need to diversify portfolios with digital assets and expressed optimism about the industry’s prospects over the next ten years.

“We are currently in an environment where there are risks of confiscation of any form. Gold handles this task better. […] Digital assets are not yet good competitors, but they will continue to develop,” he stressed.

The billionaire urged adding both gold and cryptocurrencies to portfolios as a hedge against inflation.

Earlier in February, Dalio предупредил о возможном запрете цифровых активов в некоторых странах. До этого он допустил, что регуляторы «убьют» биткоин в случае его массового успеха.

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