- American billionaire investor Ray Dalio analyzed Bitcoin’s behavior during periods of market instability and concluded that BTC is not a reliable safe-haven asset.
- Today, it serves as a bargaining chip in the portfolios of modern traders.
Bridgewater Associates founder Ray Dalio expressed about the role of Bitcoin in global markets, questioning the reliability of the leading cryptocurrency as a safe-haven asset compared to gold.
Dalio noted that Bitcoin Bitcoin continues to attract investor attention, but it has failed to live up to expectations as a safe haven during periods of market instability. Ironically, one of the issues has been the transparency of the Bitcoin blockchain, which makes transactions traceable and monitorable. The expert believes this characteristic limits central banks’ interest in reserve assets.
Dalio noted the high correlation between cryptocurrency and technology stocks, especially during periods of liquidity shortages. In such situations, investors often liquidate their Bitcoin positions to meet commitments on other assets in their portfolios.
Regarding gold, Dalio described the precious metal as an established asset in the global financial system due to its broader ownership base and its role in investment allocation and reserve strategies.
His statements sparked a debate in the community, which was further fueled by data Strategy companies comparing annual returns of major asset classes during the “Age of Bitcoin-standard”, which began on August 10, 2020.
According to the schedule, for the period under review Bitcoin demonstrated an annualized return of 40%, outperforming several traditional investment products. In particular, ETF The Nasdaq-100 QQQ has returned 19% for the year, while ETF S&P 500 SPY – 16%. Investing in gold through GLD yielded a 15% return.
Data from Strategy
The data also showed weaker results in other traditional sectors. Real estate investments through the VNQ generated a 6% annualized return, while bond investments through the BND returned a negative 1%.
The Strategy document stated that Bitcoin outperformed gold and showed a higher Sharpe ratio over the same period. The company described gold as an “equity analog,” and Bitcoin as “digital capital,” adding that the transparency of the Bitcoin network makes it suitable for use as global collateral.
With this opinion agreed Market commentator Oliver L. Velez, who believes that Bitcoin’s transparent ledger structure is a key differentiator from traditional financial systems.
According to Veles, opaque settlement systems and unverifiable monetary claims are long-standing problems in global finance. He emphasized that transparency should be distinguished from the confidentiality of transactions, some of which may remain private while the overall money supply remains public.
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