Ray Dalio has a little bit bitcoin however prefers ‘timeless and common’ gold

Bridgewater founder Ray Dalio. Brendan McDermid/File Picture/Reuters Billionaire investor Ray Dalio stated he has a little bit bitcoin however prefers gold. On a latest podcast, he stated bitcoin is risky and has a smaller valuation than mega-cap shares like Microsoft. “I don’t understand why people are more inclined to go to bitcoin than gold.”

Ray Dalio stated he holds a small quantity of bitcoin, however the cryptocurrency strikes in unreliable methods and the billionaire investor favors gold.

“I would prefer gold,” he stated on Chris Williamson’s YouTube podcast this week, declaring that bitcoin has a smaller valuation than mega-cap shares like Microsoft.

On Thursday, bitcoin’s market cap was about $574 billion, in comparison with Microsoft’s $2.27 trillion.

“I don’t understand why people are more inclined to go to bitcoin than gold. If you look internationally, gold is, for central banks, the third highest reserve asset,” the Bridgewater Associates founder stated. “First is dollars, then euros, then gold, and Japanese yen. And central bankers are buying gold, and they’re not buying bonds. And it’s timeless and universal.”

Dalio added that he is not an enormous fan of bitcoin, whereas acknowledging he has “a little bit of it.”

However even with a small holding, bitcoin’s volatility calls for an outsized quantity of consideration from traders, he warned.

“But if you have a little bit of it, you have to think about those things. Like I said, you have to be prepared for it to fall a lot, if it goes down 80% or something. But that limits the amount that you can have,” Dalio stated. “So I don’t know. I don’t think a lot of bitcoin.”

Whereas bitcoin stays nicely off its November 2021 excessive of $67,000, it has soared 80% up to now this 12 months to just about $30,000.

Its rally has coincided with hopes for a pause in Federal Reserve price hikes and the banking turmoil brought on by Silicon Valley Financial institution’s collapse in March.

A Standard Chartered note on Monday stated bitcoin is a pretty asset throughout stress intervals because of its decentralized nature, including that it might skyrocket in the direction of $100,000 by the top of 2024.