Ray Dalio claims that gold is a better safe haven in times of armed conflict than bitcoin. He warned that “there is only one gold.” However, just a few months ago he encouraged people to invest in BTC.
Ray Dalio no longer supports Bitcoin?
Gold is not a precious metal to be speculated on
– he said, adding that gold is the “most established currency”, being the second largest reserve currency of central banks.
He warned that he saw no reason why central banks would want to buy bitcoin and add to their reserves.
At the same time, he admitted that bitcoin has the characteristics of hard money and its price is characterized by “a fairly high correlation with technology stocks.”
To further muddy the picture, Dalio expressed some concerns about Bitcoin’s lack of privacy as a payment network. In his opinion, “every transaction (in the BTC blockchain) can be monitored.” Additionally, it may be threatened by quantum computers.
Change of mind?
Last month, Dalio warned investors that the “World Order” led by the United States for decades had “broken down” and investors now needed to protect their wealth. He suggested that a series of geopolitical conflicts lie ahead. This would suggest that it is worth investing in safe havens.
For centuries, gold has been considered a synonym of wealth and a safe investment asset. Is it true? Let us remember that the gold price has been rising for months, but in fact it mainly helps to make up for the effects of rising inflation. In other words, it is not the metal of kings that is rising in price, but fiat currencies that are losing value. Hence, bitcoin is a great complement to the metal – it allows you to actually multiply your capital.
Today, one bitcoin costs just over $71,000. We managed to break the ATH from the previous bull market – USD 69,000.
