Bridgewater Associates founder and Bitcoin skeptic Ray Dalio may be changing his tune on the leading cryptocurrency.
In a new Reddit “As Me Anything” (AMA) thread, Dalio offers his updated opinion on Bitcoin as a store of wealth option, saying it could “serve as a diversifier to gold.”
Dalio writes that gold could be a successful portion of a portfolio meant to hedge against the possible failings of a fiat monetary system.
“I think that bitcoin (and some other digital currencies) have over the last ten years established themselves as interesting gold-like asset alternatives, with similarities and differences to gold and other limited-supply, mobile (unlike real estate) storeholds of wealth. So it could serve as a diversifier to gold and other such storehold of wealth assets.
The main thing is to have some of these type[s] of assets (with limited supply, that are mobile, and that are storeholds of wealth), including stocks, in one’s portfolio and to diversify among them. Not enough people do that.”
Dalio’s comments appear to be an evolution of his previous sentiments regarding Bitcoin. In early November, Dalio questioned the cryptocurrency on multiple fronts, highlighting Bitcoin’s volatility and predicting that governments will ultimately outlaw the asset before BTC can reach its potential.
During the AMA, Dalio stresses the overall importance of diversifying one’s portfolio among an array of “currencies, countries, and asset classes” and studying history to help guide one’s present financial actions.
As to whether the hedge fund manager prefers Bitcoin over gold as an asset class, he says it will depend on which store of wealth option central banks favor.
“As far bitcoin relative to gold, I have a strong preference for holding those things which central banks are going to want to hold and exchange value in when they are trying to transact.”
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