Ray Dalio Drums Support For Bitcoin
It is not unusual for investors to have doubts over new investment opportunities despite seeing early returns. Digital currencies were also subjected to harsh criticism from public figures, Billionaire investors and analyst during their early years. Bitcoin, the leading cryptocurrency giant, had its share of criticism as many believed it is not sustainable and predicted the crash of the giant cryptocurrency that currently trades at about $19,000 today.
Today a lot of them have now changed their opinions about it with the chairman of Bridgewater Associates, Ray Dalio being the latest to join the long list. Ray has now moderated his previous stance on the largest cryptocurrency, although he claims he wouldn’t still invest his money in it.
Ray Dalio considers Bitcoin as an alternative asset to gold
During a Reddit Ask Me Anything(AMA) session last Tuesday, Ray believes that the cryptocurrency market is here to stay. He states that the cryptocurrencies(Bitcoin and altcoins) have established themselves over the last ten years as the best go-to investment options in the world. He also believes that they currently rival traditional assets like gold. The billionaire hedge-fund manager also noted that cryptocurrencies share differences and similarities to gold and various limited-supply and mobile strongholds of wealth.
Ray further went on to say that Bitcoin could rival gold in the market and believes that the main thing is for investors to have different types of assets in their portfolio, including stocks, gold and cryptocurrencies. In the same interview, Ray further went on to say despite his new belief in Bitcoin; he would still prefer a central bank regulated asset like gold over Bitcoin. He further went to confirm that he won’t be investing in cryptocurrency, at least for now.
Ray Dalio and others now believe in Bitcoin
In an interview three years ago, Ray Dialo disagreed with Stanley Druckenmiller who claimed that Bitcoin is a better asset compared to gold. Ray claimed that Stanley was incorrect in his assertions and believes that the cryptocurrency is not a “good store of wealth” because it’s highly volatile. He also argued that Bitcoin isn’t regulated and is not a good medium of exchange. Ray is not the only investor who now has a new belief in Bitcoin despite criticism in the past.
In October 2017 during a meeting at the Institute of International Finance, CEO of Blackrock, Larry Fink slammed Bitcoin by calling it “An index for money laundering”. He believed that the cryptocurrency was a scheme to launder money, and he feels its investors are reaping from the laundering. Also a year later, Fink stated that BTC is not legitimate and sense that no government will allow it unless they have a sense of where the money’s going.
In a surprising twist of turn and like Ray Dalio, Fink in a conversation with Mark Carney, a former Governor of the Bank of England at Council on Foreign Relations (CFR) meeting earlier this month concluded that BTC will eventually end up into a global market if it continues with this its rise and still thinks the market is still thin as it needs more people in the space. And unlike Ray whose investment in Bitcoin isn’t certain, Fink’s company Blackrock committed to BTC by investing 38,250 BTC in Microstrategy, an information technology company.