Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: rose berry on April 17, 2023, 07:23:55 AM
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The cryptocurrency market in 2022 was a rollercoaster ride, as it suffered a loss of $2 trillion in value due to multiple factors, such as the increasing interest rates and cryptocurrency exchange failures. Despite the impressive recovery of Bitcoin, Ray Dalio, the founder of Bridgewater Associates and a renowned investor, still thinks that Bitcoin is not a reliable store of value or a medium of exchange.
In an interview, Dalio reiterated his previous stance on Bitcoin, stating that its volatility makes it an ineffective currency. He added that Bitcoin is a "very, very poor alternative to gold" since central banks hold gold as their third-largest reserve, after US dollars and euros, and then yen. Dalio argued that Bitcoin is not a good store of wealth due to its significant volatility and low correlation with the prices of goods and services.
Moreover, he expressed his concern that governments could regulate or outlaw Bitcoin, making it a non-viable alternative. He also mentioned that Bitcoin receives an excessive amount of attention, disproportionate to its size as an asset.
Recently, Bitcoin's price has experienced a surge above $30,000 after a slow start of around $28,000. This positive trend was driven by bullish investors pushing Bitcoin's price above the $30,000 resistance level, and the announcement of the US Consumer Price Index (CPI) also had a significant impact on the cryptocurrency's price, reaching its highest level since June 2022 at $30,500.
In conclusion, the cryptocurrency market's volatility and uncertainty continue to pose challenges for investors and traders, and Ray Dalio's skepticism towards Bitcoin's reliability as a store of value and medium of exchange highlights the need for caution when investing in cryptocurrencies.
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