Famous billionaire Ray Dalio stated that Bitcoin (BTC) is not a good competitor to gold.
Speaking to the Economic Times, Dalio acknowledged the potential of Bitcoin and digital assets, noting their performance over the past decade.
Dalio emphasized that since Bitcoin has a limited supply, it is an anti-inflation tool just like gold.
Dalio, however, sees the likelihood of central banks adopting Bitcoin as a reserve asset due to problems such as privacy and bans in some countries.
“There are still issues with Bitcoin. Transactions can be tracked and therefore there is a privacy issue. They can be controlled, they can be closed, they can become illegal due to alternative currencies. So I don’t think they will be held as central bank reserves for various reasons”
Not a Good Competitor Against Gold
While Dalio believes that investors should include digital assets like Bitcoin in their portfolios, gold is better against inflation. He said he took a sigh.
The billionaire also argued that Bitcoin’s overall market cap is lower than Microsoft’s, making it a less desirable asset compared to gold.
Dalio said that despite this view, he is optimistic about the growth of the crypto industry in the next 10 years:
“I think gold is doing a better job. However, as I said, we are in a new environment and this may include NFT and other assets. Gold rivals, but not as good as him. But we will solve them. It will evolve in the next 5 to 10 years”
Dalio also stated that every investor should expand their portfolio:
“Choosing a digital currency and not having gold or just having gold Not having a digital currency is a mistake. I think it is wrong for everyone to have a single currency”
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