Cryptocurrency

Investor a millionaire ensures that Bitcoin is not the best alternative to the fiat

Ray Dalio, investor billionaire founder of Bridgewater Associates, said that Bitcoin was not the best alternative to the fiat. This was announced in the framework of the World Economic Forum 2020, which is being held in Davos, Switzerland. During an interview he had with CNBC, Dalio released their predictions about what that holds for the future of the world economy. Like many enthusiasts of Bitcoin, stated that there will come a time in which the coins traditional not going to be useful to the society. Therefore, it is necessary to find alternatives for them. One of the recommendations that you gave was to resort to gold to try to preserve the value of your money. However, unlike the fans of the cryptocurrencies, the billionaire does not believe that Bitcoin is a good alternative where to deposit your funds.

Economic recession imminent

Before continuing it is necessary to clarify why it would be necessary to find an alternative to national currencies traditional in the first place. And the response of the investor was that there will soon be an economic recession is imminent. “We are in a place in monetary policy where it can no longer stimulate the same way that it did before.” This is due to the lack of tools available that have Central Banks. What that has caused in many parts of the world interest rates close to their historical lows. Also, Dalio looks larger budget deficits than before. And, in his opinion, the money freshly printed will be used to pay for this increased spending. “The way it works is: print money, buy a voucher, give it to the seller of the voucher and buy other financial assets”. But government bonds, according to the investor, each day they are less attractive. That is why we created the question of what could be the best reserve of value in the future.

The best option for the future

Something that Dalio makes clear is that the cash is not going to work. If you come to a scenario of global recession, “cash is trash… because you’re going to print money”. This opinion is shared by the members of the community cryptography. The problem is that Dalio also sees in Bitcoin a viable exit to the crisis. The main reason they gave was that it was too volatile to act as a deposit of appropriate value. In fact, he said that in the long term sees more potential in a project as a Pound, the digital currency sponsored by Facebook. “The money has two purposes: a medium of exchange and a store of wealth. And Bitcoin is not cash in any of those cases now.” It is for this reason that the investor considers that betting on gold as a store of value is a better option than doing it by Bitcoin. The following two tabs change content below. I am a student of International Studies, interested in new technologies and their impact on the world. A true believer that tenacity is the foundation of success.

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