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Bitcoin valid alternative to gold

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Ray Dalio: Bitcoin valid alternative to gold

Ray Dalio is back to talking about Bitcoin on Reddit, showing flashes of positivity with respect to his latest comments.

In a series of tweets released from his profile over the past few weeks, Ray Dalio asked about Bitcoin and said he might be missing something. In that case, he expressed a number of doubts, including fears that Profit Revolution he might be made illegal when he started to become a competitor of fiat currency.

While not answering a specific question from someone who was asking if he had bought Bitcoin as a result of this tweet, Ray Dalio did address the issue, this time on Reddit.

Ray Dalio prefers gold to Bitcoin

To a user who asked if Bitcoin was the answer to the challenges that the current monetary system has caused, he replied:

„I think that bitcoin (and some other digital currencies) has established itself over the last decade as an interesting alternative to gold, with similarities and differences to gold and other movable assets (unlike real estate) with a limited offer. So it could serve as a diversifier of gold and other such assets“.

Therefore, the skepticism of the past weeks shows an awareness: Bitcoin is an interesting alternative to gold.

Ray Dalio continues:

„The main thing is to have some of these assets (with a limited offer, which are mobile, and which are wealth deposits), including stocks, in your portfolio and diversify between them. There aren’t enough people who do that“.

That said, he prefers gold:

„As for bitcoin over gold, I have a strong preference for keeping things that central banks will want to keep or trade when they try to make transactions“.

In practice, Bitcoin for the founder of Bridgewater Associates is not a good investment at the moment as it is not yet accepted by central banks.

Central banks‘ challenge at Bitcoin

Indeed, central banks seem to fear cryptocurrency, so much so that their response to Bitcoin and stablecoin seems to be the issuance of CBDC (Central Bank Digital Currency). At the moment, Europe and the US are only designing a digital state currency, while China seems to be one step away from release.

Of course, digital state currencies cannot be compared to Bitcoin for a very simple reason: state currencies will be strongly centralized, while Bitcoin is designed to be decentralized (and pseudo-anonymous).

Its use would also be different, since central bank currencies would be nothing more than a digital reproduction of paper money. Their use would therefore only be that of a means of payment, while Bitcoin, as confirmed by Dalius himself, has now become a reserve of value.