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Why the Wall Street veteran thinks Bitcoin is not yet usable money.

The year 2019 was marked by some of the most powerful people in the world who spoke about Bitcoin in public. President Donald Trump said in a surprising Twitter thread that cryptocurrencies, from BTC to Libra, are not something he is a fan of, citing the potential that Bitcoin & Co. can be used for crimes. Elon Musk from Tesla said in a podcast that he thought the structure of Bitcoin was “brilliant” and that other digital assets could have some value.

It seems that this trend that big investors and entrepreneurs are talking about cryptocurrency has continued in the new year. This time it's Ray Dalio, co-founder of Bridgewater Associates, the world's largest hedge fund.

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Is BTC not a good investment?

At the World Economic Forum in Davos, Ray Dalio met with CNBC to talk about the markets, especially about monetary policy and its relationship to gold. While the conversation was about gold, Dalio was talking about Bitcoin.

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Ray Dalio (@RayDalio) on @CNBC at Davos discusses Bitcoin and Gold at 9: 10 – says BTC is too volatile to be a good store of value right now and central bankers won't hold Bitcoin but will hold gold

Amazing this conversation is even happening

– Avichal Garg (Electric Capital) ⚡ (@avichal) 21. January 2020

Halfway through the interview, he said that he believes that due to market volatility, Bitcoin is currently unsatisfactory for the two leading use cases of money, namely, store value and exchange.

Dalio added that central banks are therefore unlikely to hold the cryptocurrency, but will rather keep gold.

Institutions will put 2020 big on Bitcoin

While Dalio and others insist that Bitcoin is not a viable store of value or a medium of exchange, some analysts are convinced that 2020 will be the year , in which institutional actors invest large amounts of capital in the crypto markets.

Changpeng “CZ” Zhao, CEO of Binance has reported that his company is experiencing an increase in institutional enthusiasm for cryptocurrency. Peter Johnson, a principal at crypto-friendly venture capital firm Jump Capital, said global macro investors focusing on long-term narrative shifts on a global scale will begin to put capital into Bitcoin due to changes in the macroeconomic and geopolitical environment.

Not to mention that 2019 a number of institutions have already started to invest in Bitcoin. The parent company of the New York Stock Exchange founded the Bitcoin derivatives exchange Bakkt and Fidelity Investments – one of the world's leading asset managers and financial service providers – also introduced a Bitcoin custody account for its thousands of customers.

Proof of text: newsbtc