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Dalio sees gold as a hedge against inflation but also has a bit of BTC in his portfolio.
Hedge fund manager Ray Dalio says heâs still bullish on Bitcoin (BTC) but has a greater penchant for gold.
Speaking to CNBC on Wednesday, the billionaire investor admitted to owning a âvery small amountâ of Bitcoin but said that he would choose gold if he had to make the choice between the two.
âIf you put a gun to my head, and you said, âI can only have one.â I would choose gold.â
But he added that he sees Bitcoin as digital gold and that it remains an important way to diversify. âThere are certain assets that you want to own to diversify the portfolio, and Bitcoin is something like a digital gold,â he said.
Dalio has been a long-term gold bull, with his Bridgewater hedge fund having poured more than $400 million into gold in the second quarter of last year. In 2019, he wrote that adding gold can help balance a portfolio because it is both risk-reducing and return-enhancing.
The store of value properties makes it attractive to Dalio, who considers it a natural hedge against inflation. Central banks currently hold more than 35,000 metric tons of gold, which equates to about a fifth of all gold ever mined.
Dalio has previously warned about possible regulation of crypto assets and even a potential ban in the United States just as it did with gold ownership in the 1930s. In Dalioâs mind, there is âa reasonable chanceâ that Bitcoin could eventually be outlawed by the federal government.
He remains cautious about Bitcoin but still wants it in his portfolio for diversification purposes, adding, âBy and large, I donât really know whether Bitcoin is going to go up or down. I could argue both sides of that.â
In May, he stated that he would prefer to purchase BTC over bonds during an interview at the Consensus crypto conference.
Related:Â Ray Dalio does 180 on Bitcoin, calls it âone hell of an inventionâ
At the time of writing, gold is trading at $1,810 per ounce, having lost 4.4% since the beginning of the year. Bitcoin, conversely, is up 36% over the same period, trading at $39,360, according to CoinGecko.
Another billionaire musing on Bitcoin in recent days is venture capitalist Marc Andreessen. In a new interview with Bloomberg on Tuesday, the co-founder of Andreessen Horowitz said BTC was âone of the most amazing things Iâve ever seenâ and a âfundamental technological breakthrough.â
However, the report suggested he was more enthusiastic about the decentralized system upon which it is built. He said âmany of the smartest people in computer science are going into this field,â adding that it represented âa new kind of financial systemâ where people are âable to form trust relationships in an untrusted environment.â
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