Ray Dalio, the billionaire investor and entrepreneur has cautioned against Bitcoin’s use as a safe haven and long-term asset. He argues that Bitcoin has limited central bank backing and is hampered by privacy concerns and its quantum resistance.
Dalio dismissed The All-In Podcast, which was broadcast on Tuesday, questioned the notion that Bitcoin (BTC), can be used as digital gold. “there is only one gold.”
“Gold is not a precious metal that’s speculated on,” Dalio stated that the word “daily” is a misnomer. “most established money” This is the second most important reserve currency that central banks hold.
Dalio said he does not see any reason why central banks might want to hold Bitcoin for a long time.
Dalio previously stated that Bitcoin is a hard currency and that it will continue to be used. “have a pretty high correlation with tech stocks.”
“So, from an ownership perspective, supply and demand can be affected if somebody gets squeezed in one area and has to sell something else they hold.”
Dalio expressed concern about Bitcoin’s lack of security, saying “any transaction can be monitored,” Quantum computing is a threat to the internet, and this has been warned.
Dalio suggested a change in the July Dalio’s recommendation. 15% portfolio allocation To optimize your investment, you can convert to Bitcoin or gold. “best return-to-risk ratio” The light America’s crippling debt problem Continued currency devaluation.
Related: Bitcoin dives 3% on global asset rout as $5K gold ‘smashed’ on oil fears
Bitcoin and gold both rose between July and October until the crypto-market crash, which wiped out almost $20 billion of leveraged positions.
Early October saw the pair decouple. Bitcoin falling over 45% Gold has continued its rally since it peaked in October at $68,420. Its price rose over 30% from $5,120 to that peak.
Dalio: The world we know has changed
Dalio sent Investors were warned last month that there was a risk of the “World Order,” The US led one for more than a century. “broken down,” Why investors need to rethink how they protect their wealth Despite the rise of geopolitical conflicts and economic disorder.
Dalio reaffirmed his belief that the gold and other stores of value are best to maintain wealth during times of economic instability, when credit systems fail, currencies fall, and debt becomes vulnerable.
Magazine: Is China hoarding gold so yuan becomes global reserve instead of USD?
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Source: cointelegraph.com
