The former crypto-skeptic not only revealed that he owns a small portion of Bitcoin (BTC), but also praised how far the flagship cryptocurrency has come since its inception. He stressed the fact that it was never “hacked” or suffered a violation.
Bitcoin Has Imputed Value
Calling it an amazing accomplishment for Bitcoin, the billionaire said in a recent interview with MarketWatch that he believes in blockchain technology because it has “earned credibility.”
Dalio is one of the most influential and successful hedge fund managers of all time. However, he was not always a fan of Bitcoin. But now he has admitted to having a “little” of the cryptocurrency in his wallet.
While on the topic of investment portfolios, Dalio also mentioned that Bitcoin is almost a younger generation’s alternative to Gold and added,
“… a portfolio should start with, in the worst case scenario, what assets protect it and make sure it is diversified.” It is almost an alternative to gold for a younger generation and it has no intrinsic value, but it has imputed value and therefore it has some merit.
Having said that, Dalio stated that several issues concern Bitcoin. He predicted that some governments may outlaw the cryptocurrency if they feel it threatens the establishment or when it becomes “relatively attractive.”
He doesn’t think central banks or large financial institutions will hold a significant amount of BTC. This is not the first time that the founder has made such a statement. Earlier in September of this year, Dalio said that regulators could “kill” Bitcoin if it really succeeds and they have ways of killing it.
“I Would Choose Gold”
It is tough to say if Dalio is, in fact, completely sold on the concept of Bitcoin. While he has asserted his bullishness in blockchain technology and believes the cryptocurrency has achieved a remarkable feat, Dalio is not a big holder of Bitcoin.
He said so earlier in 2021, saying he would choose gold over Bitcoin if someone put a gun to his head and asked him to make a choice. The billionaire may have warmed up to the cryptocurrency industry, but he still considers gold to be superior.
Dalio’s reason for backing Bitcoin at this stage arises solely for the purpose of diversification.
