Cathie wood says Bitcoin and Ether is ‘like gold,’ but Ray Dalio disagrees

Cathie wood says Bitcoin and Ether is ‘like gold,’ but Ray Dalio disagrees

Cathie Wood believes that Bitcoin and Ether act as “risk off” assets, and are a “flight towards safety” by investors in the face of macroeconomic uncertainty.


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Cathie Wood, CEO of ARK Invest, believes that recent turmoil in the banking industry has demonstrated that Bitcoin ( BTC), and Ether ( ETH), can withstand a shaky economic climate, outperform others asset classes, and function like Gold. But one long-time investor is still not convinced.

Wood stated in an April 15, interview, that Bitcoin’s resistance throughout the most recent banking crisis was “the most impressive” of all indicators that her tech-focused Investment Management firm is monitoring.

She claimed that Bitcoin and Ether were now acting as “risk off” assets, and as a “flight towards safety” for investors in the face of macroeconomic uncertainty:

They’re going disrupt the traditional order of the world. What is Bitcoin and Ether up to? “I mean, the fact that they are being considered a flight to safety as gold is really interesting. It suggests a much wider-based acceptance and adoption than I think most understand.”

“We’d say there is a flight towards safety, led certainly by crypto assets. It tells us that the world continues to transform and will continue to do so. “You cannot stop innovation”, she continued.

Wood believes that cryptocurrency will become a “election issue,” when it becomes more widely accepted. The public can then more clearly understand the regulatory pressures the United States Government is putting on the industry in order to maintain centralized money and monetary policies.

Wood’s opinion is not shared by all.

In an interview on April 12, Ray Dalio — the founder of Bridgewater Associates, the largest hedge fund in the world by assets under management – stated that Bitcoin cannot serve as “effective currency” due to its volatility and the fact that central banks will not adopt it.

Bitcoin is not a currency because it is neither a store of wealth nor a medium of trade. It is volatile and has no relation with […]. It’s an extremely poor alternative to gold.

They can ban [Bitcoin] They can regulate Bitcoin. He said that central banks and governments don’t really want it.

Analyst: Bitcoin is likely to outperform other crypto assets after the banking crisis

Dalio backed up his argument by pointing out gold as the third-largest reserve held by the central banks behind the U.S. Dollar and the Euro.

Despite describing Bitcoin in the past as “one helluva invention,” Dalio said recently that he wants to build an “inflation linked” coin that would ensure that consumers have their purchasing power secured.

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