Spark Global Limited reports:
For Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, bitcoin is like a digital version of gold, but the billionaire clearly prefers gold.
“If you put a gun to my head and said, ‘I can only pick one,’ I would pick gold,” Dario said in a recent interview, according to CNBC.
Mr. Dario, who has long been bullish on gold, wrote on LinkedIn in 2019 that increasing gold exposure could help balance a portfolio, reducing risk while improving returns. Bridgewater reinvested more than $400 million to buy gold during the second quarter of last year.
Dario revealed in May that he owned an unknown amount of Bitcoins after years of expressing concerns about cryptocurrencies.
“I only have a very small amount of bitcoin,” Dario told CNBC recently. If you want to diversify your portfolio through something, bitcoin is like digital gold.”
Dario stepped down as bridgewater’s co-CEO in 2017 after building it into the world’s largest hedge fund. He now serves as Chairman and co-chief investment officer of Dario.
Central banks around the world now hold more than 35,000 tonnes of gold, about a fifth of what has been mined so far, according to Reuters. Typically, central banks hold gold to diversify their reserves. Since gold is a limited physical commodity, it is a natural hedge against inflation.
Bitcoin also helps hedge against inflation, as Dario himself told Coindesk in May. But if forced to choose between gold and bitcoin, he said he would choose gold because of its long history as a “wealth reserve.”
Bitcoin’s volatility is a concern for Dario, but it’s not his only concern. In Dario’s view, there is a “reasonable probability” that bitcoin will eventually be banned by the federal government.
Fed Chairman Jerome Powell is also not a “fan” of cryptocurrencies, calling them “speculative instruments” in April. Powell also compared cryptocurrencies to gold, noting that humans have long assigned gold “a special value that it doesn’t have.”
Dario told Yahoo Finance in March that any major economic downturn or inflation event could prompt governments to take regulatory action against bitcoin and cryptocurrencies.
“Every country cherishes its monopoly on supply and demand,” Dario told Yahoo Finance at the time. They don’t want other money to keep running or compete because things can get out of hand. So I think it’s very likely that in some cases it will be banned like gold.”
In recent months and years, many financial experts have warned about the volatility of cryptocurrencies, advising people to invest only as much money as they can afford to lose.
“At the end of the day, I really don’t know if bitcoin is going to go up or down,” Dario said.
He warned against buying into bitcoin just because it was doing well for a while, and “be careful where you put your money and diversify globally, not just in the US”.
As of Wednesday, bitcoin was trading at about $39,000, down from a high of about $63,000 in mid-April, according to cryptocurrency tracker Coindesk. Spot gold is now trading at around $1,810 an ounce, up slightly from $1,776 over the same period.
Reprint indicated source：Spark Global Limited information