Billionaire investor Ray Dalio has warned against Bitcoin as a long-term store of value and safe-haven asset, arguing that it enjoys little central bank support and has lingering concerns about its privacy restrictions and quantum resistance.
Dalia released the idea that Bitcoin (BTC) could function as digital gold, saying on the All-In podcast on Tuesday that “there is only one gold.”
“Gold is not a precious metal on which you can speculate,” Dalio said, adding that it is the “most established currency” and is the second-largest reserve currency held by central banks.
Dalio added that he doesn’t see why central banks would want to buy Bitcoin and hold it for the long term.
Dalio previously said that Bitcoin has the characteristics of demanding money and noted that it still “has a pretty high correlation with tech stocks.”
“So from an ownership perspective, it could have an impact on supply and demand if someone gets squeezed into one area and has to sell something else they own.”
Dalio also raised concerns about Bitcoin’s lack of privacy, stating that “every transaction can be monitored” and warned that quantum computing could compromise the network.
In July, Dalio recommended a 15% portfolio allocation to Bitcoin or gold to optimize for the “best return-to-risk ratio” in lithe of America’s crippling debt problem and ongoing currency devaluation.
Related: Bitcoin loses 3% in the event of a global asset loss when gold worth 5,000. dollars “crashed” due to concerns about oil
From July to early October, both Bitcoin and gold rose until the broader cryptocurrency market crash resulted in a loss of nearly $20 billion in leveraged positions.
The pair then split in early October, with Bitcoin falling more than 45% from its October high to $68,420, while gold continued to rise, rising more than 30% to $5,120 in that time.
Dalio says the world as we know it has changed
Dalia sent last month a message to investors warning that the “World Order” led by the United States for most of the century has “broken down” and that investors need to rethink how they protect their wealth in the face of growing geopolitical conflict and economic disruption.
Dalio reinforced his long-held position that valuable stores, especially gold, are the best option for preserving wealth in the event of a collapse of currencies and a collapse of credit systems, while debt assets become vulnerable as uncertainty increases.
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