Central banks won't want to create Bitcoin reserves, says Ray Dalio

Bridgewater Associates hedge fund founder Ray Dalio suggested on the Master Investor podcast that central banks around the world will be reluctant to add Bitcoin to their government asset reserves due to the “open nature of the first cryptocurrency.”

Dalio doubts central banks will ever consider Bitcoin an alternative global currency. The reason is potential privacy concerns. All transactions on the Bitcoin blockchain are public. Furthermore, the seasoned investor speculated that threats from quantum computers, which could crack Bitcoin's code, will become increasingly pressing in the future.

Cryptocurrency analyst and author Adam Livingston countered Dalio, arguing that Bitcoin's openness is an advantage, not a disadvantage. Public auditing eliminates the very lack of transparency that characterized shadow banking and led to the 2008 financial crisis, Livingston said on the podcast. He dismissed concerns about Bitcoin being hacked as far-fetched, stating that Bitcoin's SHA-256 algorithm, used for mining and transaction verification, has yet to be cracked.

“I can't say for sure how effective Bitcoin is as money, but many people see it as a monetary alternative, so it's worth paying attention to. Money should be both a medium of exchange and a store of value—and the latter is far more important. Personally, I have Bitcoin in my portfolio, but not much,” Dalio wrote on social media.

In July, Dalio recommended his followers allocate 15% of their investment portfolios to Bitcoin and gold to protect against the risk of currency devaluation, as well as concerns about the rapid growth of the US national debt.

Source: cryptonews.net