Bridgewater founder Ray Dalio: BTC may not necessarily become a safe-haven asset, I believe more in gold

Bridgewater Associates founder (Ray Dalio) shared his views on BTC (Bitcoin) and GOLD (GOLD) on 2/14. He stated that although BTC is a digital asset, the government can monitor its flow, understand the property status of the holder, and even influence the BTC market through taxation or regulatory means. He emphasized that this is very different from GOLD, as GOLD is an asset that does not rely on any third-party commitments, and holders can actually own it.

When central banks and governments face crises, they still trust GOLD more.

When it comes to hedging options in times of international turmoil, Dalio stated that GOLD (GOLD) has long been a reserve asset for central banks around the world, as governments tend to print large amounts of money during wars or economic crises, leading to currency devaluation. ‘When countries no longer trust each other’s bonds, they will turn to GOLD.’ He added that even hostile countries are willing to hold GOLD because GOLD is not controlled by a single country. In contrast, Bitcoin (Bitcoin) , governments still have the ability to influence the market through regulation, thus not possessing the same ‘sovereignty’ as GOLD.

Gold inflates at about 1.5% to 2% annually, and the price of BTC is difficult to predict

Dalio pointed out that although the supply of gold increases every year, the growth rate is stable, about 1.5% to 2%. In contrast, the price volatility of BTC is larger, and it is difficult to explain with traditional market logic. “If the price of gold changes, I can understand the reason through supply and demand relationship; but the price changes of BTC, sometimes unrelated to the market fundamentals, more like a speculative market, difficult to grasp the trend.”

The international situation is unstable, and BTC may not necessarily become a safe-haven asset

Dalio originally believed that BTC should rise when international situation is tense, as it is seen as a ‘digital gold’. However, the actual market performance did not completely match this assumption. He found that the fluctuation of BTC price is sometimes unrelated to international crises or financial market changes, which made him doubt BTC’s ability as a hedge asset.

Taking all factors into consideration, Dalio admits that he still prefers GOLD personally. “After listing all the considerations, GOLD is still my top choice.” He believes that while Bitcoin has its value, the market is still mainly speculative at the moment, whereas GOLD has a long history and stability, especially in times of political turmoil, it can play a hedging role.

This article Bridge Water founder Ray Dalio: BTC may not necessarily become a safe-haven asset. I believe more in GOLD. First appeared in Chain News ABMedia.