Baffled By Bitcoin? Billionaire Ray Dalio Has Got You Covered!
The ever-controversial cryptocurrency, Bitcoin, has been in the news recently. Legendary investor and business mogul, Ray Dalio, recently made a statement about the cryptocurrency which has added fuel to the fire.
What Has Ray Dalio Said About Bitcoin?
As one of the most respected voices in the world of finances, his opinion carries major weight. Dalio has stated that, in his opinion, Bitcoin is ineffective as a medium of exchange, store of value and money, despite its impressive rise in the market.
He’s continued, saying that regular currency is much more reliable and stable when it comes to performing those tasks and is a better bet for investors.
Surely There’s Some Positive To Take From This?
Well, Dalio does recognise the potential of the technology and its power for revolutionising the global banking system. He’s also stated that the technology behind Bitcoin should be explored and appreciated, rather than dismissed out of hand.
However, Dalio’s comments about Bitcoin as a currency and investment are still worth noting. With this in mind, here are three reasons you should think carefully before making Bitcoin investments:
- Market Volatility – Bitcoin can be often unpredictable and is subject to sudden swings in value.
- Regulation Risk – Governments around the world are struggling to define the future of cryptocurrencies and regulate their uses.
- Inability to Store Value – As Dalio points out, Bitcoin may not currently be a reliable way of storing value in the medium to long-term.
At the end of the day, it’s always important to move forward with caution when it comes to investments and cryptocurrency is no different. As legendary investors such as Ray Dalio have said, it pays to be very selective about which crypto investments you make and proceed with a careful long-term plan – something that could probably be said for any kind of investment!
