CEO of Bridgewater Associates, Ray Dalio has relaxed his stance on Bitcoin. During an AMA (“Ask Me Anything”) session on Reddit, the billionaire recognized Bitcoin as a possible alternative to gold. He pointed out that Bitcoin’s limited supply makes it a feasible mobile store hold of wealth. In his words:

I think that bitcoin (and some other digital currencies) have over the last ten years established themselves as interesting gold-like asset alternatives, with similarities and differences to gold and other limited-supply, mobile (unlike real estate) store holds of wealth. So it could serve as a diversifier to gold and other such store hold of wealth assets.

With tech giants such as PayPal entering the cryptocurrency space, it comes as no surprise that many individuals and institutional investors who saw digital assets as a bubbled are beginning to shift stance.

Back in September 2017, Dalio dismissed cryptocurrencies as a bubble. Three years later, in November of this year, to be precise, he reiterated his stance claiming that digital assets were not a good store of value. He pointed to the volatility of the market.

Ray Dalio calls Bitcoin a bubble in 2017

Although the hedge fund legend is beginning to relax his stance and see a future in digital assets, he claims to still prefer the yellow metal because it is held by central banks.

As far bitcoin relative to gold, I have a strong preference for holding those things which central banks are going to want to hold and exchange value in when they are trying to transact.