Bitcoin and Ethereum are ‘like gold’ says Cathie Wood, but Ray Dalio is skeptical
Recent banking sector turmoil has demonstrated that Bitcoin (BTC) and Ether (ETH) can withstand a shaky economy, outperform other asset classes, and function like gold, according to ARK Invest chief executive Cathie Wood though one long-time investor remains skeptical. Bitcoin’s resilience in the face of the recent banking crisis is one of the most remarkable indicators Wood’s tech-oriented investment management firm monitors, she explained in an interview on April 15.
Bitcoin and Ether are now acting as exchanges “She claimed that risk-off assets and a “flight to safety” for investors in the face of macroeconomic uncertainty would “disrupt the traditional world order.”
What are Bitcoin and Ethereum up to? I mean, the fact that they’re being treated as a gold standard for flight to safety is really intriguing and suggests much broader-based adoption and acceptance than I believe most people realize.”
We believe that crypto assets are leading the flight to safety, indicating that the world is changing and will continue to change. Innovation cannot be stopped,” she said. When cryptocurrency becomes more widely accepted and the public sees the regulatory pressures the US government is putting on the industry to maintain centralized control of money and monetary policy, Wood believes it will eventually become an “election issue.”
According to Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund, Bitcoin is not an “effective currency” because it is too volatile and central banks will not accept it: “They have the power to make Bitcoin (BTC) illegal. They can control it. “Central banks and countries don’t want it anyway,” he said, adding that it receives “way too much attention.” “to its size.
Dalio’s case was bolstered by the fact that gold is the third largest reserve held by central banks, trailing only the US dollar and euros. Despite previously describing Bitcoin as “one hell of an invention,” Dalio recently stated that he would prefer to see the creation of an “inflation-linked” coin that would ensure consumers’ purchasing power is secure.
Buy and sell crypto in minutes with 0.20% trading fees at Bitdenex Exchange.