Since the introduction of bitcoin, gold has been compared to it in many ways. Enthusiasts have finally settled on referring to the former as ‘digital gold’ while continuing to push that bitcoin will replace gold as the default store of value in the coming years. However, not all bitcoin supporters seem to share this school of thought despite the asset’s growth.
Ray Dalio, a billionaire investor and supporter of Bitcoin has spoken out in support at times about the asset. However, it appears that Dalio doesn’t believe bitcoin can replace gold. A podcast interview with Lex Fridman gives insight to both assets as well as why they cannot be equaled in market capital.
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1 Million Bitcoin is Impossible
Fridman was interviewed by the billionaire to explain why bitcoin cannot replace gold. He compared bitcoin’s traceability to gold and said that it cannot be tracked because it is not linked. Furthermore, while gold is widely recognized as a store-of-value, only a few percent of the global population is likely to invest in bitcoin.
His explanation is that gold remains ahead of bitcoin, which he doesn’t yet think will become the global standard for money. For one, gold has been in existence for thousands of year and it is still a widely accepted money type or store of worth.
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Dalio believes that bitcoin won’t ever surpass the value of gold, for all the reasons he has outlined. Dalio also explained that he is not convinced that bitcoin will achieve the $1 million price point that some bitcoin-maximists insist on.
Still A Strong Contender For Gold
Dalio didn’t completely discount the value of bitcoin, however. Dalio praised bitcoin, stating that it has proven itself even though it is not able to be used as currency because of its volatility. It has been safe to invest in bitcoin because it is not susceptible to hacking and works according to the original program.
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“It has proven itself. It has not been hacked, it has operated in an amazing way over that 11 years to be probably the most exciting topic among a lot of people,” said Dalio. ”It has been used and is now obtained the status of having imputed value.”
According to the billionaire, bitcoin is a top asset on his portfolio of assets that he believes are strong rivals for gold. While he still believes that gold remains his preferred investment, he hasn’t abandoned bitcoin. Dalio disclosed that he still had bitcoin in his possession, but had also added ethereum.
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