During a recent podcast appearance, the founder of Bridgewater Associates, Ray Dalio, clarified that he is not a bull or a bear when it comes to Bitcoin.
The American billionaire changed his stance on the world's largest cryptocurrency last year, revealing that he holds some of them in May.
Investor agrees with Billionaire Bill Miller that one should allocate between 1-2% of his net worth in Bitcoin.
Dalio, who has always been an advocate of diversification, says that competing in the marketplace is harder than competing at the Olympics:
More and more people are trying to do this and devote more resources to it.
Many members of the crypto community have seen Dalio's new book on the changing world order as a 550-page advertisement for Bitcoin.
Both passionate and “considerate” people are part of the Bitcoin community, Dalio said.
The main risks that Bitcoin faces
He reiterated that he is impressed by the fact that Bitcoin has been able to stand the test of time without breaking.
However, he did warn about some of the risks that Bitcoin faces. First of all, he believes that a new alternative may emerge because things eventually get stale, that's just the nature of evolution.
He predicts that more money could flow into non-fungible tokens and other coins for diversification purposes. As reported by U.Today, Dalio has yet to get his hands on the NFT, but the latest crypto frenzy has him curious.
The head of the world's largest hedge fund has once again warned that governments can outlaw Bitcoin just as they outlawed gold and silver during the day:
When you have an alternative currency, that is a threat to every government. Every government wants a monopoly on their own currency.
Finally, he also mentioned the rise of ransomware and malware as another problem plaguing Bitcoin.