World’s Top Hedge Fund Manager Compares Bitcoin with Gold

American billionaire Hedge Fund Manager and Founder of Bridgewater Associates, Ray Dalio said that bitcoin and other Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term have established themselves as alternative assets in the last decade.

In a Reddit post yesterday, Dalio changed his tone on cryptocurrencies and presented a positive stance on digital assets. He compared bitcoin with gold and said that both have similarities as a store of value. The recent comments came as a surprise after Dalio bashed bitcoin last month for lack of adoption, high Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term and uncertain regulatory status.

The American investor added that bitcoin looks like a good tool for portfolio diversification as investors can add the world’s leading cryptocurrency in their investment pool along with traditional products like stocks and commodities.

“I think that bitcoin (and some other digital currencies) have over the last ten years established themselves as interesting gold-like asset alternatives, with similarities and differences to gold and other limited-supply, mobile (unlike real estate) storeholds of wealth. So, it could serve as a diversifier to gold and other such storehold of wealth assets. The main thing is to have some of these types of assets (with limited supply, that are mobile, and that are storeholds of wealth), including stocks, in one's portfolio and to diversify among them. Not enough people do that. As far bitcoin relative to gold, I have a strong preference for holding those things which central banks are going to want to hold and exchange value in when they are trying to transact,” Dalio said.

Institutional Money

The recent statement from the former bitcoin critic came after major Wall Street funds expressed interest in BTC and other digital assets. Finance Magnates earlier reported that Larry Fink, CEO of the world’s largest asset management firm, BlackRock showed interest in cryptocurrencies. Grayscale reported a significant jump in crypto assets under management in 2020 due to the growing interest of institutional investors in crypto-focused investment products.