Bridgewater Associates head Ray Dalio is considering bitcoin (EXANTE: Bitcoin) as additional option investment for new funds, Bloomberg has learned. In a note to clients, Dalio says the cryptocurrency is "one hell of an invention" and there are not many alternative gold-like assets in digital space.
"Because there are not many of these gold-like storehold of wealth assets that can be held in privacy and because the sizes of their markets are relatively small, there exists the possibility that Bitcoin and its competitors can fill that growing need," Dalio said.
However, the founder of Bridgewater Associates warns cryptocurrencies are still a target for hackers as no one can guarantee their security.
"When the Department of Defense can not protect its systems from being hacked it would be naïve to be totally comfortable that digital assets can not be hacked," he added.
Ray Dalio also doubts governments will allow cryptocurrencies to evolve without supervision. Last year, Dalio pointed out that the volatility of the crypto prevents it from being used as a means of payment. Moreover, the fluctuations in the price of BTC make it useless as a store of value.
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