An American investor chose gold over bitcoin: what are his reasons

Ray Dalio chose gold over bitcoin
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Ray Dalio declared that he has “some bitcoins” but assured that he is not very confident with the digital currency due to its high volatility.

Ray Dalio stated that bitcoin is like a digital version of gold, but highlights that it has a clear winner between the two. “If you point a gun at my head and tell me: I can only have one. I would choose gold,” said the investor.

Dalio revealed in May that he owns an undisclosed amount of bitcoins, having repeatedly raised his concerns about cryptocurrencies for years. Still, he cautions that you are not completely sold on these currencies. “I have a very small amount of bitcoins. I am not a large owner. There are certain assets that you want to own to diversify the portfolio, and bitcoin is kind of like digital gold,” Dalio told CNBC.

“There are certain assets you want to have to diversify your portfolio, and bitcoin is kind of like digital gold,” he explained.

Dalio revealed that he owns a certain amount of bitcoin in May, noting that one of his biggest concerns lies in whether the government will have “the ability to control” cryptocurrencies, as “no government wants there to be an alternative currency.”

The president of the Federal Reserve, Jerome Powell, is not a fan of cryptocurrency and called “vehicles for speculation” in April. Powell also compared cryptocurrencies to gold, noting that humans have long given gold “a special value that it doesn’t have.”

In recent months and years, many financial experts have warned about the volatility of cryptocurrencies and have recommended that people only invest money that they can afford to lose. For Dalio, bitcoin is just a small piece of his investment puzzle. “I just consider it a diversification. In general, I don’t really know if Bitcoin will go up or down. I could argue both sides of that,” he stated.

In recent days, the possibility that cryptocurrencies could be taxed in the United States had generated alarm in the market.

Bill HR 3684 tightens the rules on companies that handle cryptocurrencies and expands the disclosure requirements for brokers. In addition to tightening the regulations on companies focused on cryptocurrencies, the promoters of the bill believe that they can raise $28 billion of additional financing by expanding the fiscal responsibilities that apply to the transactions of digital assets. The project was finally approved amid intense criticism.

However, the US Congress’s decision on the highly anticipated Infrastructure Law project is experiencing some delays due to the drafting of cryptocurrency legislationThe debate began when Senator Pat Toomey said he would propose an amendment to the legislation. This is because it considers that the definition of what a broker is should change, and not include wallet providers, miners and stakers. At the moment, there is no definition about it.