Ray Dalio considers Bitcoin to be unsuitable as a store of value and emphasizes his preference for gold.
On November 7, 2020, Ray Dalio, Founder and CIO of Bridgewater Associates, told Yahoo! Finance on the current Bitcoin growth. Bitcoin is too volatile for him to be used as a currency. In his opinion, Bitcoin cannot be a store of wealth. In addition, the cryptocurrency would have too few areas of application to function as a medium of exchange.
I don’t think digital currencies will be as successful as people hope for these reasons
Dalio stressed that under no circumstances would he prefer Bitcoin to gold. Also, he doesn’t think Bitcoin could ever replace gold. While many experts in the crypto industry are of the opinion that cryptocurrencies like Bitcoin could replace cash in the foreseeable future, Dalio believes that the central banks will bet on gold instead of BTC in the future. However, he sees another problem with cryptocurrency:
When it becomes material [ Bitcoin ] governments will not allow it.
They will say that you are not allowed to carry out transactions with Bitcoin
On the other hand, the hedge fund legend Stanley Druckermiller, who sees Bitcoin as an attractive store of value – at least for millennials and the „new money of the West Coast“, has a completely different opinion :
The Bitcoin story is very simple. It’s about supply and demand. Bitcoin’s supply is growing about 2.5 percent annually, and demand is growing faster than that.
Druckmiller sees a similar potential in gold as in Bitcoin. Although he claims to own a lot more gold than Bitcoin, Bitcoin investments are a much better decision due to its illiquid nature.