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Ray Dalio: “Bitcoin is not a very good competitor to gold”

72-year-old investor and founder of Bridgewater Associates Ray Dalio believes that bitcoin is a good asset, but it has too many problems that will not allow it to become a full-fledged competitor to gold.

AT interview Ray Dalio told the Economic Times that bitcoin really resembles gold in that it has a clearly limited maximum supply. However, it is unlikely that the Central Banks of various countries will really use bitcoin as a reserve asset:

“There are problems with bitcoin. For example, all transactions can be tracked, there is no privacy. They can be controlled, canceled, bitcoin can be used for illegal purposes, and all this prevents it from becoming an alternative currency. Therefore, for various reasons, I do not think that bitcoin will be used as a reserve by the Central Bank.”

The investor did not tell how exactly you can control and cancel transactions in the Bitcoin network. But he noted that gold is the best alternative for hedging inflation. After all, the total capitalization of the first cryptocurrency is still less than the capitalization of Microsoft. And for gold, the indicator is several tens of times higher.

“I think gold is still better, but we are now in a new environment. There are NFTs, new projects. As I said, bitcoin can be called a rival, but it is worse than gold … However, we’ll see in the future. I think the industry will develop in the next 5-10 years,” says the founder of Brdigewater Associates.

At the same time, Dalio is still optimistic about the cryptocurrency industry and expects the industry to grow. He urged investors to diversify their portfolios and never keep “all your eggs in one basket”. And as a diversification tool, in his opinion, cryptocurrencies fit quite well.

In early February, Ray Dalio said that cryptocurrencies are now attracting too much attention and this is bad for the industry.

Source: Bits

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