Hedge fund supervisor Ray Dalio says he’s nonetheless bullish on Bitcoin but has a better penchant for gold.
Chatting with CNBC on August 4, the billionaire investor admitted to proudly owning a “very small amount” of Bitcoin but mentioned that he would choose gold if he needed to make the selection between the 2.
“For those who put a gun to my head, and also you mentioned, ‘I can only have one. I would choose gold.”
But he added that he sees Bitcoin as digital gold and that i remains an important way to diversify. “There are certain assets that you want to own to diversify the portfolio, and Bitcoin is something like a digital gold,” he said.
Dalio has been a long-term gold bull, with his Bridgewater hedge fund having poured more than $400 million into gold in the second quarter of last year. In 2019, he wrote that adding gold can help balance a portfolio because it is both risk-reducing and return-enhancing.
The store of value properties makes it attractive to Dalio who considers it a natural hedge against inflation. Central banks currently hold more than 35,000 metric tons of gold, which equates to about a fifth of all gold ever mined.
Dalio has previously warned about possible regulation of crypto assets and even a potential ban in the U.S. just as it did with gold ownership in the 1930s. In Dalio’s thoughts, there’s “a reasonable chance” that Bitcoin may ultimately be outlawed by the federal authorities.
He stays cautious about Bitcoin but nonetheless needs it in his portfolio for diversification functions, including “By and large, I don’t really know whether Bitcoin is going to go up or down. I could argue both sides of that.”
In Might, he said that he would want to buy BTC over bonds throughout an interview on the Consensus crypto convention.
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On the time of writing, gold is buying and selling at $1,810/oz having misplaced 4.4% for the reason that starting of the yr. Bitcoin, conversely, is up 36% over the identical interval buying and selling at $39,360 based on CoinGecko.
One other billionaire musing on Bitcoin in current days is enterprise capitalist Marc Andreessen. In a brand new interview with Bloomberg on Tuesday, the co-founder of Andreessen Horowitz mentioned BTC was “one of the most amazing things I’ve ever seen” and a “fundamental technological breakthrough.”
Nevertheless the report prompt he was extra enthusiastic in regards to the decentralized system it’s constructed on. He mentioned “many of the smartest people in computer science are going into this field,” including that it represented “a new kind of financial system” the place individuals are “able to form trust relationships in an untrusted environment.”