Note that Bitcoin looks worse today than it ever did in 2022. The cryptocurrency fell below $33,000 today, with it already down 14.2 percent for the week. The monthly drop rate is 21.9 per cent and the year-to-date drop rate is 43.7 per cent.

Bitvix Cryptocurrency Gambling forced to illegalize gambling in more than 4 countries

Here is a daily chart of the cryptocurrency rate. Note that BTC was valued noticeably higher at the beginning of the year.

What’s wrong with Bitcoin?

Bitcoin’s limited supply of no more than 21 million BTC in circulation makes the cryptocurrency very similar to precious metals. However, Dalio does not see the prospect of Bitcoin being accepted as a banking reserve because of the privacy and outright banning of BTC in some countries. Here is his rejoinder in which the expert shares his view of the situation. The quote is cited by CryptoPotato.

However, there are problems with Bitcoin. Transactions can be traced, so privacy is an issue. They can be monitored, they can be cancelled, Bitcoin can be used for illegal purposes, and this all prevents it from becoming an alternative currency. So for a variety of reasons, I don’t think Bitcoin will be used as a central bank reserve.

Note that the prospect of central banks loving BTC and other coins does seem elusive. After all, digital assets are decentralised, meaning that they cannot be controlled - and that is exactly what banks and other such institutions usually do. Accordingly, advertising for coins in this way does not seem very possible on their part.

Dalio is sure that Bitcoin should be in investors’ portfolios, but the cryptocurrency itself is not a good competitor to gold in terms of protection against inflation. One reason is the relatively small capitalisation of the crypto market. Right now, it is even smaller than that of Microsoft Corporation. The expert continues.

I think we are entering a new era where asset forfeiture for political or other reasons is common. Gold looks like a better investment in this context, but times are changing fast, NFTs coming into fashion and all that. Cryptocurrencies are new, but not the best competitors to traditional investments. However, that could change in the next 5-10 years.

In other words, the investor does concede that as cryptocurrencies become more popular, they could become the best anti-inflationary tool. Such an option does seem realistic, as the current state of the digital asset industry has become quite different since the same bullrun in 2017. They are now more widespread, and there are more useful platforms and whole sectors like decentralised finance, too. And that means people don't treat crypto solely as a tool for speculation.

The best strategy for investors is diversification, insists Dalio. Despite all their advantages and disadvantages, cryptocurrencies should in any case be complemented by traditional assets in the portfolio. This combination will maximise protection against inflation.

I think it is a mistake for anyone to have only one investment. For example, choosing digital currency and not having gold or having only gold and not having any digital currency.

Meanwhile, the number of precedents for Bitcoin’s usefulness in large trade transactions with real commodities continues to grow. The day before, Portugal witnessed its first ever real estate transaction for bitcoins. T3 apartments in Braga were sold for exactly 3 BTC, or $108,000 at the cryptocurrency exchange rate at the time of the transaction.

As a reminder, until last month, buyers were required to first convert their assets into euros in order to purchase real estate using cryptocurrencies. Since then, however, the Notarial Order of Portugal has established clear rules for the drawing up of deeds for the sale of real estate concluded directly in digital assets. Here is a quote from Zome, a local company that sells apartments.

This deed represents a historic milestone – the transfer of a digital asset for a real estate transaction without the need to convert the funds into euros.

According to CryptoPotato’s sources, Zome representatives were involved in the deal along with law firm Antas da Cunha, the Portuguese Chair of Notaries and other cryptocurrency-related partners. Note that this is a really important precedent for many cryptocurrency holders, who have been able to make a fortune on the bullrun of the crypto market.


We don't think the idea of a cryptocurrency-only nexus is as bad as Ray Dalio presents it. Diversification is certainly a good strategy, but in general, digital assets have already proven their ability to grow in value, and not for the first time. Accordingly, it is even possible to invest exclusively in coins. The main thing is to understand what is happening in the market and to be able to exit positions in good time. Otherwise, the so-called hodgepodge is also not a bad strategy. Especially if you choose good projects.


What do you think about it? Share your opinion in our millionaires’ cryptochat. There we discuss other important news in the blockchain world.