Posted:
- Ray Dalio changed his opinion on Bitcoin and recognized it as a competitor in the emerging currency space
- With Bitcoin predicted to potentially surpass gold ETFs in AUM, its role as a preferred store of value is being strengthened.
In a grand turn of events, Ray Dalio, popular investor and CIO of Bridgewater Associates, shows a renewed openness and confidence in Bitcoin (BTC). The director was previously known for his skepticism towards Bitcoin.
On several occasions, he has had significant doubts about whether BTC is a reliable asset, both in terms of currency and store of value. However, in a recent one interviewDalio claimed,
“The evolution of Bitcoin over the years is one of the things that I believe has influenced change. I think we’re entering an era where there is one competition of currencies, and Bitcoin will be part of that competition.”
ETFs: the standard bearers of Bitcoin’s recent wins
Spot Bitcoin ETFs have seen a remarkable increase in investor interest, amassing an impressive $10 billion in assets under management (AUM) just 20 days after their market debut.
Furthermore, this rise in the popularity of Bitcoin ETFs comes at a pivotal time in financial history. BTC has emerged as the fastest asset to reach a trillion dollar market cap, taking just 12 years to reach this milestone.
The dynamics driving this growth are multifaceted, including a 25% decline in the amount of BTC available on exchanges compared to levels before the 2020 bull cycle. These factors are consistent with predictions that BTC could reach valuations as high as $10 million per coin, as suggested by Michael Saylor, CEO of MicroStrategy.
Bitcoin ETFs Will Surpass Gold?
Stock market analysts are predicting a market crash similar to the stock market crash of 1987. However, Bitcoin may emerge as a ‘safe haven’ for investors during this period, due to its limited supply and growth predictions that are free from inflation and political governance.
Furthermore, Bitcoin ETFs are quickly closing the gap on gold in terms of assets under management, with gold worth $93 billion and BTC $37 billion. In fact it is speculation that BTC could soon surpass gold ETFs. An investor at Simply Bitcoin commented similarly, saying:
“The money is already fleeing the gold ETFs and flowing into the Bitcoin ETFs. This is the big transition.”
This shift underlines BTC’s role not only as a digital currency, but also as a credible and increasingly preferred store of value.
Will Bitcoin become the ultimate asset to invest in?
Dalio’s recent confidence in BTC resonates with that of crypto figures like Saylor or companies like BlackRock and Fidelity. The bigger market sentiment is to invest in this asset class. In fact, according to billionaire Richardo Salinas, it is
“There will only be 21 million Bitcoins for the entire planet. They don’t make more of it.”
