Bridgewater analyst: “clear regulation of bitcoin will make it more stable”

Bridgewater Investment Director Rebecca Patterson believes that clear regulation of cryptocurrencies will make Bitcoin more stable and increase its liquidity.

Patterson said that if international regulators develop specific regulatory requirements for digital assets, this will solve the problem of high volatility in Bitcoin. As a result, more institutional investors will pay attention to it. According to the analyst, it is the unstable rate of the first cryptocurrency and its low liquidity that are the main obstacles to Bridgewater’s transition to Bitcoin.

Patterson explained that tweets about bitcoin alone can greatly affect its value, so many large organizations are afraid to invest in this crypto asset. For example, at the end of January, Tesla CEO Elon Musk wrote one word in his profile description: bitcoin, after which the BTC rate increased by 20%. Bridgewater’s head of investment said:

“The volatility of bitcoin is ten times that of the US dollar. This issue will be addressed if Bitcoin becomes more stringently regulated. This will increase people’s confidence in bitcoin, so all types of investors will be comfortable working with it. But I’m not sure that the US is ready to deal with this issue now. ”

A Bridgewater analyst also said she sees bitcoin not as an alternative currency, but as “digital gold.” Many investors are starting to invest in bitcoin due to concerns about global inflation, which is caused by the printing of money by central banks of different countries. However, bitcoin must prove its status as “digital gold”, and this will take a long time. Therefore, Bridgewater cannot yet accept Bitcoin with certainty.

Earlier, Bridgewater Associates founder Ray Dalio said that Bitcoin is unlikely to be accepted as a currency. Dalio believes that only precious metals can become an alternative to cash.

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