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

Recent turmoil successful the banking assemblage has shown that Bitcoin (BTC) and Ether (ETH) tin withstand a shaky economy, outperform different plus classes and relation similar gold, says ARK Invest main enforcement Cathie Wood — though 1 long-time capitalist inactive isn’t sold.

Wood explained successful an April 15 interview that Bitcoin’s resilience passim the astir recent banking crisis has been “the astir remarkable” of each indicators her tech-focused concern absorption steadfast is monitoring.

Bitcoin and Ether are present acting arsenic “risk-off” assets and arsenic a “flight to safety” for investors amid macroeconomic uncertainty, she claimed:

“They’re going to disrupt the accepted satellite order. What are Bitcoin and Ether doing? I mean by the precise information that they’re being considered formation to information similar gold, that’s truly absorbing and suggests overmuch broader-based adoption and acceptance than I deliberation astir radical understand.”

“We would accidental that determination is simply a formation to safety, surely led by crypto assets, and it is telling america that the satellite is transforming and volition proceed to transform. You cannot halt innovation,” she added.

Why person bitcoin and different crypto assets appreciated during this banking crisis? In our presumption and successful opposition to those successful the accepted fiscal world, galore crypto assets look nary cardinal points of failure: they are decentralized, transparent, and auditable.

— Cathie Wood (@CathieDWood) March 23, 2023

Wood thinks cryptocurrency volition yet go an “election issue” erstwhile the assemblage becomes much broadly accepted and the nationalist tin much intelligibly spot the kinds of regulatory pressures that the United States authorities are applying connected the industry to support centralized power of wealth and monetary policy.

Not each stock Wood’s sentiment.

Ray Dalio, the laminitis of Bridgewater Associates, the world’s largest hedge money by assets nether management, explained successful an April 12 interrogation that Bitcoin cannot service arsenic an “effective currency” due to the fact that it is excessively volatile and cardinal banks won’t follow it:

“Bitcoin is neither an effectual store clasp of wealthiness oregon a mean of speech truthful it is not an effectual currency. It has a volatility to it that has nary narration to practically thing [...] it’s a very, precise mediocre alternate to gold.”

“They tin outlaw [Bitcoin]. They tin modulate it. Central banks and countries beauteous overmuch don’t privation it anyway,” helium said, adding that it gets attraction “way retired of proportion” to its size.

Related: Bitcoin apt to outperform each crypto assets pursuing banking crisis, expert explains

Dalio strengthened his lawsuit by pointing retired that golden is the 3rd largest reserve held by cardinal banks, trailing lone the U.S. dollar and euros.

Despite previously describing Bitcoin arsenic “one hellhole of an invention,” Dalio precocious explained that helium alternatively wants to spot an “inflation-linked” coin beryllium built that would serve to guarantee consumers unafraid their buying power.

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