Bitcoin acts as a good insurance against inflation, but it is not a complete alternative to gold. Such an opinion was presented by billionaire Ray Dalio in an interview with the Economic Times.

The founder of Bridgewater Associates acknowledged the first cryptocurrency’s similarity to the base precious metal in a limited supply, but highlighted the obstacles to central banks’ conversion into reserve assets.

“Transactions can be tracked […]. It can be controlled, revoked and made illegal.” Dalio said without explanation.

The billionaire also compared bitcoin’s capitalization to Microsoft’s and concluded that the first cryptocurrency was “less suitable” for capital savings compared to gold.

Despite skepticism, Dalio acknowledged the need to diversify the portfolio with digital assets and expressed optimism about the future of the industry in the next decade.

“We are now in an environment where there is any risk of confiscation. Gold does this better. […] Digital assets are not good competitors yet, but they will continue to evolve.” stressed.

The billionaire has called for adding both gold and cryptocurrencies to the portfolio to hedge against inflation.

Recall that in February Dalio warned of a possible ban on digital assets in some countries. Prior to that, he admitted that regulators would “kill” bitcoin if it were a huge success.