Ray Dalio, one of the most important names in the global financial industry, made a harsh criticism of Bitcoin (BTC) and cryptocurrencies in general. Ray Dalio, founder of Bridgewater Associates, who manages over $ 138 billion in assets, stated that states could ban Bitcoin and cryptocurrencies at some point.
Bitcoin and cryptocurrencies against CBDCs
Yahoo! Speaking to Finance, Dalio explained his thoughts on Bitcoin, cryptocurrencies and central bank digital currencies. The founder of the world’s largest hedge fund hinted that in the future, central bank digital currencies could become much more popular than Bitcoin or cryptocurrencies.
According to Dalio, there are three main reasons why central bank digital currencies, defined as CBDC, come to the fore:
- The scarcity of institutions that will accept cryptocurrencies for purchases.
- Bitcoin and cryptocurrencies have so much price fluctuation that they cannot be used as a value store or store of value.
- The fact that if bitcoin or cryptocurrencies become “essential” in the future, states will do everything in their power to ban them.
Bitcoin 10 times the rise of gold price
Dalio continued in the interview, emphasizing that, right now, “he cannot buy his Bitcoin and easily buy something with it.” Dalio did not hesitate to make the famous “Bitcoin vs gold” comparison. Emphasizing that gold investment is an asset that central banks and countries will use as an alternative to fiat money, the billionaire investor stated that there is no similar situation for Bitcoin. Using the phrase “I do not prefer Bitcoin to gold”, Dalio also made his stance clear. BTC, on the other hand, has climbed up to $ 16,000 today, up 324% after dropping to $ 4,000 in March. The ONS gold price, on the other hand, has seen an approximately 30% price increase since the same date.
Expressing that digital currencies cannot succeed “as people hope”, Dalio trusts CBDCs. According to the famous fund manager, CBDCs will continue to grow and become popular. Finally, the fund manager added that for the above reasons, CBDCs will be more popular than cryptocurrencies such as Bitcoin in the future. In fact, the Fed’s CBDC assessment report was published shortly before Dalio’s announcement. This shows that there is an increase in interest towards CBDCs in the USA for now.