Speculative tycoon Ray Dalio prefers gold over Bitcoin

“If you put a gun to my head and let me choose between the two, I’d go for gold,” Dalio mentioned in an interview with CNBC.

Billionaire Ray Dalio – Photo: Getty / CNBC.

For the billionaire and well-known speculator Ray Dalio, Bitcoin will be seen as a sort of digital gold, but he prefers gold.

“If you put a gun to my head and let me choose between the two, I’d go for gold,” Dalio mentioned in an interview with CNBC.

Mr Dalio, 72, mentioned he owned Bitcoin in May however didn’t disclose the quantity. Over the previous few years, he has repeatedly raised issues about cryptocurrencies. Now that he is purchased Bitcoin, he says he is nonetheless not totally satisfied of the asset.

“I have a small amount of bitcoin. I don’t buy a lot, ”Dalio mentioned in a latest interview with CNBC. “There are certain types of assets that you want to hold to diversify your portfolio, and Bitcoin is like a form of digital gold.”

In 2017, Mr. Dalio left the place of Co-CEO of Bridgewater Associates – the hedge fund administration firm he based and developed into the world’s largest firm within the area. He is at present Chairman and Co-CEO of Bridgewater. Last 12 months he based Principles, a individuals administration software program startup.

Mr. Dalio has been often known as a gold lover for a few years. In 2019, he wrote on LinkedIn that including gold to a portfolio may help steadiness a portfolio as gold each reduces threat and will increase returns. In the second quarter of final 12 months, Bridgewater poured greater than 400 Million {dollars} purchase gold.

According to Reuters information, central banks all over the world now maintain greater than 35,000 tons of gold, round a fifth of the gold mined to this point. The function of central banks in holding gold is to diversify their portfolios, and since gold is a finite commodity, it’s anti-inflationary.

In May, Mr Dalio prompt that Bitcoin may additionally assist battle inflation. However, if he had to decide on between gold and Bitcoin, he would select gold, as a result of gold has an extended historical past as a “store of value” – an asset that may be held and transformed on the similar price as the acquisition price.

In different phrases, the dizzying volatility in Bitcoin price worries Mr. Dalio. And the speculative tycoon is not the one one to argue like that.

According to Dalio, it’s “absolutely possible” that Bitcoin will likely be banned by the US authorities sooner or later. A precedent was set nearly a century in the past: in 1934, US President Franklin D. Roosevelt signed the Gold Reserve Act, which transferred all privately owned gold certificates within the United States to the treasury. Back then, the United States was utilizing a gold customary, and Roosevelt hoped to free the economic system from the Great Depression by way of devaluation. U.S. greenback.

According to Mr Dalio, within the occasion of a significant financial recession or hyperinflation, the US and different governments all over the world may do the identical for Bitcoin and different cryptocurrencies.

Much like Mr. Dalio, the chairman of the US Federal Reserve, Jerome Powell, will not be a fan of cryptocurrencies. In April, Mr. Powell referred to as cryptocurrencies a “speculative tool”. He additionally in contrast digital currencies to gold, however mentioned that humanity has lengthy ascribed gold “a special value that gold lacks” as an industrial metallic.

In latest years, many monetary consultants have warned concerning the volatility of digital currencies, saying that traders ought to solely put money into digital currencies as a lot as they’ll settle for a loss. For Mr. Dalio, Bitcoin is just a tiny a part of his large portfolio. “I’m just thinking about diversification. In all honesty, I don’t know if the price of Bitcoin will go up or down. I can argue either way, ”he mentioned.

The key, Mr. Dalio mentioned, is to continually reevaluate these investments and keep away from shopping for an asset like Bitcoin simply because that asset is briefly rising in price. “Be careful what you spend your money on. And let’s diversify globally and not in a single market like the US, ”he mentioned.

A huy

VnEconomy