According to billionaire investment legend Ray Dalio, Bitcoin is a great protection against inflation, but not a good competitor to gold. In a recent interview with the Economic Times, Ray Dalio recognized the potential of digital assets and Bitcoin in particular, citing impressive returns over the past decade.
“Bitcoin has unresolved problems”
The 72-year-old American investor notes that Bitcoin’s absolute scarcity of 21 million makes it comparable to other universally accepted inflation protections like gold. Ray Dalio, however, does not see central banks adopting Bitcoin as a reserve asset anytime soon, due to certain privacy concerns and bans that exist in some countries.
“The fact that transactions can be traced is a problem. Cryptocurrencies can be monitored and disabled, and they can be made illegal if they prove to be an alternative to fiat money. So I think they won’t be bought by central banks for various reasons,” said Ray Dalio about Bitcoin, among others.