Dalio says that Bitcoin’s volatile nature leaves it with fewer use cases as a medium of exchange. He added that he would prefer Gold over Bitcoin.
While Bitcoin (BTC) has successfully managed to melt the hearts of some of the biggest global investors, a few still continue to criticize it. Billionaire investor Ray Dalio recently showered his criticism on Bitcoin while being positive for central bank digital currencies (CBDCs).Ray Dalio is a big name in the global financial industry and also the founder of Bridgewater Associates. He is also the founder of the world’s largest hedge fund that manages over $138 billion worth of assets. In his latest video interview with Yahoo Finance, Dalio notes that Bitcoin is not a smart investment choice due to extreme volatility and less ease of use in daily life.Besides, Dalio also thinks that Bitcoin is not a stable source of wealth and has fewer use cases as a ‘medium-of-exchange’. He further added that if Bitcoin (BTC) becomes “material”, the government institutions will “outlaw it”. “They’ll use whatever teeth they have to enforce that. I don’t think digital currencies will succeed in the way people hope they would,” Dalio added.Dalio also spoke about the hottest topic in the market – Bitcoin vs Gold. Well, he clearly showed his bias for the yellow metal saying that it is an asset for central banks and an alternative for fiat money. He would “not prefer Bitcoin to gold,” he added.Ray Dalio Bets Big on CBDCsThe central bank digital currencies (CBDCs) have been under a huge discussion with major countries experimenting with a digital fiat. China and the European Union have been the forerunners in the race of getting the first CBDC to the market.In his interview, Ray Dalio stated that CBDCs could be rather more popular over other digital currencies. Dalio notes that CBDCs will run on a centralized system and thus remain in control of authorities. However, many from the crypto community believe that the widespread use of CBDCs can push further the use of digital currencies in a positive direction.Needless to say, Dalio’s views are a bit old school when it comes to understanding Bitcoin (BTC) and crypto. The world’s largest cryptocurrency has managed to outclass all other assets this year. While Gold has delivered less than 35% appreciation year-to-date, BTC has given over 105% returns so far in 2020. Thus, BTC clearly outperforms gold by 3x.Just an hour ago, the Bitcoin (BTC) price surpassed $16,000 levels hitting it new 2020-high. However, it looks like multiple sell orders above $16K have resulted in a sharp reversal.Interestingly, many institutional players have recently endorsed Bitcoin. The list includes some billionaire investors like Stan Druckenmiller, Paul Tudor Jones, Bill Miller, Mike Novogratz, Michael Saylor, and others.next Share:
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