Price of Bitcoin Declined in the Past 24 Hours

Main cryptocurrencies are trading in the red on Monday, with the world’s most well-known cryptocurrency falling more than 2% in the past 24 hours. Even though Bitcoin has seen a slide, it gained more than 8% in the past week. At the moment, Bitcoin is trading at above $43,000.

Ethereum also suffered losses on Monday. It is trading close to 6% lower from the previous day, hovering close to $3,000.

The global cryptocurrency market capitalization fell 3.77% in the past 24 hours to $1.74 trillion.

Billionaire investor Ray Dalio gave an interview several days ago. Dalio expressed his opinion regarding Bitcoin. Ray Dalio who turned 72 on Sunday, revealed in May that he owns an undisclosed amount of Bitcoin. For the billionaire investor, the world’s biggest cryptocurrency is like a digital version of gold. Nevertheless, Ray Dalio clearly values one higher than the other. According to Dalio, he prefers gold to Bitcoin.

Ray Dalio and Bitcoin

Ray Dalio stepped down as co-CEO of Bridgewater Associates in 2017. He helped to transform Bridgewater Associates into the world’s largest hedge fund. Billionaire investor currently serves as Bridgewater’s chairman and co-chief investment officer. In 2020, he launched Principles, a people management software startup.

He is a long-time gold supporter. For instance, he expressed his opinion about gold in 2019. Dalio wrote that adding gold can help balance one’s portfolio because it is both risk-reducing and return-enhancing. In 2020, Bridgewater Associates invested more than $400 million into gold during the second quarter.

Central banks hold more than 35,000 metric tons of gold as of July 2021. Central banks around the world hold gold to diversify their reserves and since gold is a finite physical commodity, it is a natural hedge against inflation.

Ray Dalio himself told in May that Bitcoin can also help hedge against inflation. Nevertheless, if forced to choose between gold and the main cryptocurrency Dalio would pick gold due to its long history as a “storehold of wealth”. For Bridgewater’s chairman, Bitcoin is only a small piece of his larger investment puzzle.

In other words, Bitcoin’s volatility is a concern for Bridgewater’s chairman and not his only one. Dalio believes that the federal government could ban Bitcoin one day. Unfortunately, Ray Dalio is not alone. The current Federal Reserve chair Jerome Powell also raised concerns about cryptocurrencies. In April, he called cryptocurrencies “vehicles for speculation”.

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