“There’s a lot of money chasing all sorts of things, crypto among them.” These were the words of the founder of the world’s largest hedge fund, Bridgewater Associates.
The former crypto skeptic not only revealed holding a small portion of Bitcoin (BTC) but also commending how far the flagship cryptocurrency has come since its inception. He outlined the fact that it has never been “hacked” or suffered a breach.
Bitcoin Has Imputed Value
Calling it an amazing accomplishment for Bitcoin, the billionaire said in a recent interview with MarketWatch that he believes in blockchain technology because it has “earned credibility.”
Dalio is among the most influential and successful hedge fund managers of all time. However, he was not always a fan of Bitcoin. But now, he admitted having a “little bit” of the cryptocurrency in his portfolio.
While on the topic of investment portfolios, Dalio also mentioned that Bitcoin is almost a younger generation’s alternative to Gold and added,
“..a portfolio should start off with, under a worst-case scenario, what assets protect it and make sure it’s diversified. It’s almost a younger generation’s alternative to gold and it has no intrinsic value, but it has imputed value and it has, therefore, some merit.”
Having said that, Dalio stated that several issues concern Bitcoin. He predicted that some governments may outlaw the cryptocurrency if they feel it threatens the establishment or when it becomes “relatively attractive.”
He does not believe that central banks or major financial institutions will hold a significant amount of BTC. This isn’t the first time the founder made a statement such as this. Earlier in September this year, Dalio said the regulators might “kill” Bitcoin if it becomes really successful and that they have ways of killing it.
“I Would Choose Gold”
It is tough to say if Dalio is, in fact, completely sold on the concept of Bitcoin. While he has asserted his bullishness in blockchain technology and believes the cryptocurrency has achieved a remarkable feat, Dalio is not a big holder of Bitcoin.
He conveyed this earlier in 2021, saying he would choose Gold over Bitcoin if someone puts a gun to his head and asks him to make a choice. The billionaire may have warmed up to the cryptocurrency sector, but he still values Gold to be superior.
Dalio’s reason for backing Bitcoin at this stage arises solely for the purpose of diversification.