Ray Dalio: Bitcoin is Not an Alternative to Gold

Bitcoin is a good insurance against inflation, but not a full-fledged alternative to gold, billionaire Ray Dalio has said in an interview with the Economic Times.

The founder of Bridgewater Associates has acknowledged the similarity of the cryptocurrency with the main precious metal in a limited supply, but has noted the obstacles to its transformation into a reserve asset of central banks. He has explained:

“Transactions can be tracked. They can be controlled, canceled and made illegal.”

The billionaire has also compared the capitalization of Bitcoin with that of Microsoft and has concluded that the cryptocurrency is “less suitable” for capital preservation compared to gold.

Despite the skepticism, Dalio has acknowledged the need to diversify the portfolio with digital assets and expressed optimism about the prospects for the industry in the next ten years.