Bitcoin Not a Better Inflation Hedge than Gold: Ray Dalio
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The billionaire founder of Bridgewater Associates also noted in his interview with the Economic Times that the limited supply nature of Bitcoin gives it a competitive edge over other universally accepted inflation hedges like gold.
That said, the 72-year-old veteran investor argued that he does not see central banks adding BTC to their reserves due to numerous issues ranging from privacy concerns and volatility. Dalio explained:
“Still, there are issues with them. Transactions can be traced, so privacy is an issue. They can be controlled, they can be shut down, [and] they can be made illegal, which tends to tap in during times when they may be threats to the alternative currency. So, I don’t think they’ll be held as central bank reserves for various reasons.”
While the veteran hedge funder sees sense in investors adding Bitcoin to their portfolio, he noted that gold is a better inflation hedge. He also noted that Bitcoin’s total market valuation is currently less than Microsoft’s, making it less desirable for wealth storage compared to gold.
At press time, BTC has a total market valuation of $654.8 billion, a massive drop from its previous trillion-dollar valuation.
Key Bitcoin Levels to Watch — May 8
Bitcoin has obliterated the critical $36K support line over the past 24 hours, as the flagship cryptocurrency slumped to the $34K low on Sunday amid mass asset dumping by whales.
This trajectory is likely to persist in the coming days towards the lower-$33K region, January 2022 low. That said, traders should desist from placing aggressive bets on this asset until some level of stability re-emerges.
Meanwhile, my resistance levels are at $36,000, $37,000, and $38,000, and my key support levels are at $34,000, $33,000, and $32,000.
Total Market Capitalization: $1.58 trillion
Bitcoin Market Capitalization: $654.8 billion
Bitcoin Dominance: 41.5%
Market Rank: #1
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