Billionaire Ray Dalio likes Bitcoin but always chooses gold

Hedge fund supervisor Ray Dalio stated he stays bullish on Bitcoin but has a larger penchant for gold.

Speaking to CNBC on Aug. 4, the billionaire investor admitted that he owned a “very small amount” of Bitcoin but stated he would go for gold if he had to decide on between the 2.

“When you place a gun to my head and say, ‘I can solely have one. I’ll select gold. “

However, he added that he sees Bitcoin as digital gold and mine is still an important avenue for diversification. “There are sure property that you just wish to personal in an effort to diversify your portfolio, and Bitcoin is one thing like digital gold,” he said.

Dalio was a long-term bull as his hedge fund Bridgewater invested more than $ 400 million in gold in the second quarter of last year. In 2019, he wrote that adding gold can help balance a portfolio as it both reduces risk and increases returns.

The store of value makes it attractive to Dalio because he sees it as a natural hedge against inflation. The central banks currently hold more than 35,000 tons of gold, which is about a fifth of the gold ever mined.

Dalio previously warned of possible regulations on crypto assets and even a possible ban in the US, as was the case with gold ownership in the 1930s. As Dalio thinks, there is “an inexpensive likelihood” that Bitcoin could eventually be ostracized by the federal government.

He remains cautious about Bitcoin, but still wants it in his portfolio for diversification reasons and adds: “Overall, I really don’t know whether Bitcoin will go up or down. I could deny both sides. “

In May, in an interview on the Consensus cryptocurrency convention, he said that he would moderately purchase BTC than bonds.

Related: Ray Dalio makes 180 with Bitcoin and calls it “a hell of an invention”

At the time of this writing, gold is trading at $ 1,810 / oz, down 4.4% year-to-date. In distinction, Bitcoin is up 36% 12 months over 12 months, in response to CoinGecko, and is trading at $ 39,360.

Another billionaire who has taken an curiosity in Bitcoin up to now few days is enterprise capitalist Marc Andreessen. In a brand new interview with Bloomberg on Tuesday, co-founder Andreessen Horowitz stated BTC was “one of the most amazing things I’ve ever seen” and a “fundamental technological breakthrough”.

However, the report exhibits that he’s extra excited concerning the decentralized system on which it’s constructed. “Many of the brightest people in computer science are entering the field,” he stated, including that it represents “a new kind of financial system” through which folks can “create new financial systems.” Trusted relationships in an unreliable surroundings.