American billionaire Hedge Fund Manager and Founder of Bridgewater Associates, Ray Dalio said that bitcoin and other cryptocurrencies 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 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.
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“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.
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.