Cloud Hosting

Recent turmoil in the banking sector has shown that Bitcoin (BTC) and Ether (ETH) can withstand a shaky economy, outperform other asset classes and function like gold, says ARK Invest CEO Cathie Wood butone long-time investor still isnt sold.

Wood said in an April 15 interview that Bitcoins resilience throughout the most recent banking crisis has been the most remarkable of all indicators her tech-focused investment management firm is monitoring.

Bitcoin and Ether are now acting as risk-off assets and as a flight to safety for investors amid macroeconomic uncertainty, she claimed:

We would say that there is a flight to safety, certainly led by crypto assets, and it is telling us that the world is transforming and will continue to transform. You cannot stop innovation, she added.

Wood thinks cryptocurrency will eventually become an election issue when the sector becomes more broadly accepted, and the public can more clearly see the kinds of regulatory pressure that the United States government is applying on the industry to maintain centralized control of money and monetary policy.

Not all share Woods sentiment.

Ray Dalio, the founder of Bridgewater Associates the worlds largest hedge fund by assets under management saidin an April 12 interview that Bitcoin could not serve as an effective currency because it is too volatile and central banks wont adopt it:

They can outlaw [Bitcoin]. They can regulate it. Central banks and countries pretty much dont want it anyway, he said, adding that it gets attention way out of proportion to its size.

Related: Bitcoin likely to outperform all crypto assets following banking crisis, analyst explains

Dalio strengthened his case by pointing out that gold is the third largest reserve held by central banks, trailing only the U.S. dollar and euros.

Despite previously describing Bitcoin as one hell of an invention, Dalio recently said that he instead wants to see an inflation-linked coin be built that would serve to ensure consumers secure their buying power.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

Read the rest here:
Bitcoin, Ether are like gold says Cathie Wood, but Ray Dalio is skeptical - Cointelegraph