American billionaire investor and hedge fund manager Raymond Dalio indicates he has already invested in Bitcoin (BTC). Speaking in a Coindesk interview, Dalio said Bitcoin’s greatest threat is its success. According to him, more government regulations and scrutiny are expected to go into the cryptocurrency space as the industry flourishes to a point it is threatening their existence.
Jurisdictions that will support the best technology infrastructure in the next five years are likely to be ahead in financial and military aspects. Furthermore, the world is shifting towards technology-related crises away from bullet war at a gradual pace and in some geographical areas at an unprecedented rate.
During the interview, Dalio indicated that the world is experiencing several types of inflation whereby money printing by central banks is one of them. Consequently, he noted that it would be much better to hold Bitcoin than a government bond that typically is a promise to receive printed money from the central bank. “Personally, I’d rather have bitcoin than a bond in an inflationary scenario,” Dalio said.
Raymond Dalio and Bitcoin
The revelation that Dalio owns Bitcoin was warmly welcomed by notable cryptocurrency investors including Michael Saylor CEO and Founder MicroStrategy, Anthony Pompliano, and Binance CEO CZ through their Twitter accounts.
The crypto market recently suffered a notable dip that was partially affected by Tesla’s decision to stop accepting Bitcoin as a form of payment due to environmental issues.
Dalio’s entrance into the Bitcoin and crypto market may be a testimony with other hedge fund managers who have not publicly announced their involvement. As various governments put in place measures to counter the Covid crisis, hedge fund managers are predicting a scenario that most bonds will have minimal returns. Nonetheless, the future is promising for hedge fund managers as they are now diversifying into various blockchain technology-related stocks and also the cryptocurrency market.
While Bitcoin is down approximately 10% in the past seven days according to CoinGecko, the asset is up over 340% in the past 12 months. To put the figures into a better perspective, the Dow Jones index is up approximately 40% in the past twelve months according to market analytics provided by MarketWatch. The S&P 500 index on the other hand was up approximately 42% in the past twelve months through Monday and was trading around 4,197.05 points at the time of reporting.
Although Bitcoin is down around 30% in the past 30-days, the asset has shown to produce incredible results over the long term. Hedge fund managers can now diversify through the cryptocurrency market in a regulated manner. Although the United States Securities and Exchange Commission (SEC) has not yet approved any of the filed Bitcoin ETFs, institutional investors can access the cryptocurrency industry directly by purchasing Grayscale products.