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Younger generations were always more open to new inventions and technologies than those who spent decades upon decades of their life without them, and the same is true for the crypto industry. Recent reports have revealed that wealthy millennials are the most bullish on cryptocurrency, and billionaire Ray Dalio came to a similar conclusion, noting that Bitcoin (BTC/USD) is already the younger generations’ alternative to gold.
Bitcoin is young people’s alternative to gold
The famous investor admitted to being impressed with Bitcoin and its underlying technology, the blockchain, noting that achieving what Bitcoin managed to achieve is an “amazing accomplishment.” Not only did it grow in value and popularity, but its technology was never hacked since it was created, and it always worked without issues.
Of course, Bitcoin has its shortcomings, including the inability to scale and speed up transaction processing, but the founder of the world’s largest hedge fund, Bridgewater Associates, says that he believes in the blockchain.
Dalio confirmed that he owns “a little bit” of Bitcoin, without revealing the exact amount, but he also said that he sees it as younger generations’ alternative to gold. Bitcoin is like gold, although gold is much better established as an alternative to fiat money, at least for now. He also pointed out that Bitcoin supporters view it as digital gold, and that the asset is on its way to becoming a store of value, and a hedge against inflation, rather than a currency used in everyday transactions.
He noted that Bitcoin has no intrinsic value, but that this is not the case when it comes to imputed value. As such, it definitely has some merit, as Dalio concluded.
The future of Bitcoin: Outlawed or adopted?
However, he still remains concerned about the government’s stance towards it, as he believes that Bitcoin might still get outlawed. It is a threat to governments around the world, and it will almost certainly be outlawed in some places where it is most attractive, and likely the most needed. However, he believes that there will likely be places that will not outlaw it, although he doubts that central banks and major institutions will have a significant amount in it.
Dalio’s thoughts on the coin’s legal status have already been proven true to an extent. China, for example, has already outlawed it to the extent that one can now only own Bitcoin without breaking the law, but not do anything else with it. On the other hand, El Salvador has it as legal tender. The rest of the world will have to choose one of these two sides in years to come, as ignoring it might do more harm than good.
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