Ray Dalio: “If you put a gun to my head I prefer gold over Bitcoin”
Ray Dalio, a billionaire American hedge fund manager and philanthropist, has stated several times that he likes Bitcoin, has revealed that he owns BTC, and has called it an interesting investment, similar to gold.
However, according to his statements yesterday to CNBC Make It, between the two he has a favorite: the golden metal.
“If you put a gun to my head, and you said, ‘I can only have one,’” says Dalio. “I would choose gold.”
He repeated to CNBC something similar to what he said in May of this year: that he has a low amount of BTC.
“I own a very small amount of bitcoin. I’m not a big owner,” he said. “There are certain assets that you want to own to diversify the portfolio, and bitcoin is something like a digital gold.”
He has long been a golden bull, according to the outlet: In 2019, he wrote on LinkedIn that adding gold can help balance one’s portfolio by reducing risk and improving performance.
Bitcoin can also help guard against inflation, as Dalio himself told Coindesk in May. Earlier in January, he also said that BTC was an excellent store of value.
But if forced to choose between gold and Bitcoin, he says he would choose gold because of its long history as a “store of wealth,” that is, an asset that can be held and converted to money at a rate relatively similar to its price.
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In other words, the volatility of Bitcoin is a concern for Dalio, and not the only one: he is concerned about the legal issue.
What Dalio explained is related to the fears that others have: how much a ban would affect. According to him, there is a “reasonable chance” that Bitcoin will eventually be outlawed by the federal government.
In 1934, President Franklin D. Roosevelt signed the Gold Reserve Act, transferring all of the nation’s private gold titles and certificates to the United States Department of the Treasury.
For Dalio, Bitcoin is just a small piece of his biggest investment puzzle. “I just think of it as diversification,” he said. “In general, I don’t really know if Bitcoin will go up or down. I could argue both sides of that. “