The banking crisis showed that Bitcoin is capable of resisting a stable economy and working like gold. This is how Cathie Wood, CEO of Ark Invest, referred to through her social networks. Yet another investing guru isn’t so convinced.
The banking crisis showed that the Bitcoin is able to withstand a stable economy and function as the gold. This is how Cathie Wood, CEO of Ark Invest, referred to through her social networks. Yet another investing guru isn’t so convinced. Who has the reason?
Wood said in an interview on April 15 that bitcoin’s resilience throughout the most recent banking crisis has been “the most notable” of all the indicators his technology-focused investment management firm is monitoring.
Bitcoin and Ether are now acting as “risk-off” assets and a “flight to safety” for investors amid macroeconomic uncertainty, He stated: “They are going to upset the traditional world order. What are bitcoin and ether doing? I mean the mere fact that they are considered a safe haven, like gold, is really interesting and suggests a much wider adoption and acceptance than most people realize.”
“We would say that there is a flight to safety, certainly led by crypto assets, and it is telling us that the world is transforming and will continue to transform. You cannot stop innovation,” he added.
Wood believes that cryptocurrency will eventually become a “election issue” when the industry is more widely accepted and the public can more clearly see the kind of regulatory pressure the US government is putting on the industry to maintain centralized control of money and monetary policy.
Another investor disagrees
ray daliofounder of Bridgewater Associates – the world’s largest hedge fund by assets managed – said in an interview on April 12 that bitcoin could not serve as an “effective currency” because it is too volatile and central banks will not adopt it: “Bitcoin is neither an effective store of wealth nor a medium of exchange, so it is not an effective currency. It has a volatility that is unrelated to practically anything […] it is a very, very poor alternative to gold.”
“They can outlaw it. They can regulate it. Central banks and countries pretty much don’t want it anyway,” he said, adding that it gets “greatly disproportionate” attention to its size.
Dalio reinforced his argument by pointing out that gold is the third largest central bank reserve, behind only the US dollar and the euro.
Despite previously describing bitcoin as “a great invention,” Dalio recently said he wants to see an “inflation-linked” currency built to ensure consumers’ purchasing power security.
Source: Ambito
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