Bitcoin, Ether are like gold says Cathie Wood, but Ray Dalio is skeptical

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Recent turmoil in the banking sector has shown that Bitcoin (BTC) and Ether (ETH) can weather a shaky economy, outperform other asset classes and perform like gold, says Cathie Wood, Managing Director of ARK Invest , although a longtime investor is still not sold.

Wood explained in an April 15 interview that Bitcoin’s resilience throughout the last banking crisis was the most remarkable of all the indicators his technology-focused investment management company monitors.

Bitcoin and Ether now act as risky assets and a flight to safety for investors amid macroeconomic uncertainty, she claimed:

They will disrupt the traditional world order. What do Bitcoin and Ether do? I mean by the very fact that they’re considered flight to safety like gold, it’s really interesting and suggests much wider adoption and acceptance than I think most people understand.

We would say there is a flight to security, certainly led by crypto assets, and that tells us that the world is changing and will continue to change. You can’t stop innovation, she added.

Wood believes that cryptocurrency will eventually become an election issue when the sector gains wider acceptance and the public can see more clearly the kinds of regulatory pressures the US government is applying on the industry to maintain centralized control of the cryptocurrency. money and monetary policy.

Not everyone shares Woods’ sentiment.

Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund by assets under management, explained in an interview on April 12 that Bitcoin cannot serve as an effective currency because it is too volatile and central banks do not use it. will not adopt:

Bitcoin is neither an efficient store of wealth nor a medium of exchange, so it is not an efficient currency. It has a volatility that has no relation to practically anything […] it is a very, very poor alternative to gold.

They can ban [Bitcoin]. They can regulate it. Central banks and countries hardly want it anyway, he said, adding that it attracts disproportionate attention for its size.

Related: Bitcoin Likely to Outperform All Crypto Assets After Banking Crisis, Analyst Says

Dalio reinforced his argument by pointing out that gold is the third largest reserve held by central banks, behind only the US dollar and the euro.

Although he previously described Bitcoin as a hellish invention, Dalio recently explained that he instead wanted to see an inflation-linked coin built that would serve to guarantee consumers the security of their purchasing power.

Magazine: Unstablecoins: Depegging, bank runs and other imminent risks

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