The year 2022, for the cryptocurrency market was highly dramatic as the sector lost $2 trillion in value after the collapse of the markets due to increasing interest rates and a slew of unpredicted cryptocurrency exchange failures.
Despite the cryptocurrency king Bitcoin’s impressive recovery to start the year, Ray Dalio, the founder of Bridgewater Associates and a famed investor, said that Bitcoin is still not a trustworthy store of value or a means of exchange.
In an interview with Julia La Roche, Dalio stated that he still holds the same opinions about Bitcoin and added that it is not an effective currency because of its volatility. He said, “It’s a very, very poor alternative to gold… Central banks, by the way, own gold, and it’s their third-largest reserve – US dollars, euros, gold, and then yen.”
Dalio had previously argued that Bitcoin is “not very good as a store-hold of wealth because its volatility is great and has little correlation with the prices of what I need to buy.”
He added, “They can outlaw [Bitcoin]. They can regulate it. Central banks and countries pretty much don’t want it anyway. So it’s not a good viable alternative… You can have it go down 80%, and if you want to have a little bit [of] it, you can have it. It’s not a big asset. It gets an amount of attention which is way out of proportion to its size.”
Bitcoin soars above $30k
After a slow start with BTC trading at around $28,000, the bulls started to gain momentum and pushed the price up to $29,000 on Monday. This was followed by a successful attempt to break through the $30,000 resistance level, which resulted in a rapid price increase for Bitcoin.
The US Consumer Price Index (CPI) announcement also had a significant impact on the price of Bitcoin. As a result, Bitcoin rose to $30,500, its highest level since June 2022.
Source: https://coinpedia.org/bitcoin/billionaire-ray-dalio-says-bitcoin-is-a-very-poor-alternative-to-gold/