- Bridgewater’s Director of Funding Analysis advised Bloomberg on Wednesday that bitcoin may turn out to be “digital gold.”
- “As institutional buyers, we do not know but if it will be digital gold, it could be over time, however I do not suppose we will say that with confidence but,” Patterson stated.
- Patterson argued that with extra “regulatory certainty”, volatility and liquidity points might subside.
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Bitcoin may turn out to be “digital gold” if volatility and liquidity points subside with “regulatory certainty,” in accordance with Bridgewater’s director of funding analysis Rebecca Patterson.
Patterson sat down with Bloomberg on Wednesday to debate her agency’s funding technique, and the subject of bitcoin rapidly got here up.
The director stated she “would not name bitcoin another foreign money” and argued that, if something, the better comparison is to gold.
Patterson famous she believes bitcoin has the potential to turn out to be “digital gold” sooner or later, however present regulatory, volatility, and liquidity points have stored Bridgewater away for now.
“As institutional buyers, we do not know but if it will be digital gold, it could be over time, however I do not suppose we will say that with confidence but,” Patterson stated.
She highlighted bitcoin’s worth to buyers as a hedge in opposition to fiat foreign money inflation within the interview.
“It’s one thing that buyers have been seeking to as they fear about fiat currencies being devalued by all this central financial institution printing,” she stated.
When requested what the set off can be that might signify bitcoin is actually “digital gold,” Patterson stated there is not “one inexperienced mild” for Bridgewater, however there are some things the agency is on the lookout for.
First, Bridgewater must see decrease volatility. Patterson stated, “proper now bitcoin can transfer 10% on a tweet, that is not precisely a retailer of wealth for many institutional buyers.” She additionally famous bitcoin’s volatility remains to be double that of the Venezuelan Bolivar.
Second, the agency needs to see larger liquidity and Patterson argued this liquidity might come from “regulatory certainty.”
In contrast to many different analysts and buyers, Patterson does not see regulation as bitcoin’s downfall.
“The extra you get an actual regulatory ecosystem creating round bitcoin and different currencies, the extra different kinds of buyers are going to be comfy coming in, that is going to convey the liquidity, that is going to cut back the volatility,” the director stated.
In a tweet final Sunday, Michael Burry, who rose to fame after being portrayed in ‘The Huge Brief’, stated practically the other.
Burry argued bitcoin’s “long-term future” is “tenuous” due to regulatory threat.
The Scion Asset Administration chief stated in a tweet, “legally violent, heartless centralized governments with #lifeblood pursuits in monopolies on currencies” will not enable bitcoin to thrive and stay decentralized within the long-term.