Bitcoin's strong rally since late last year has turned many skeptics into endorsers of the digital currency, and the latest to join the camp is Ray Dalio of Bridgewater Associates, the world's biggest hedge fund.
What Happened: "Those who have built the Bitcoin and supported the dream of making this new kind of money a reality have done a fabulous job of sustaining that dream and moving Bitcoin into being an alternative gold-like asset," Dalio said in a note to the hedge fund clients on Thursday.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The hedge fund manager made the clarification of his stance on the cryptocurrency to clear the air on the different interpretations in the media.
"I believe Bitcoin is one hell of an invention," Dalio wrote.
The hedge fund manager clarified that by "Bitcoin," he means the leading cryptocurrency and "its analogous competitors."
The fact that a new of money was invented through a system that is programmed into a computer and is rapidly gaining popularity both as a type of money as well as a "storehold of wealth" is an "amazing accomplishment," he added.
Dalio sees it as a gold-like safe-haven investment, satiating the growing need for money or "storehold of wealth assets" that are limited in supply and can be privately held.
Why It's Important: Bitcoin, which was trading around the $11,000 level in October, has been going higher ever since and ended 2020 with a 300% gain.
The leading cryptocurrency traded at $34,121.46 at press time.
Image: WikiCommons