Bridgewater Associates, director of investment research, explained how bitcoins and other cryptocurrencies can reduce volatility as well as increase liquidity.
The world’s largest hedge fund Bridgewater Associates is ready to invest in bitcoin if its volatility decreases and liquidity increases.
This was stated in an interview with Bloomberg TV by the director of investment research of the Foundation Rebecca Patterson. According to her, now the value of the main digital coin can fluctuate within 10% due to posts on Twitter. Bitcoin volatility is ten times higher than the US dollar, Patterson said. She expressed confidence that such an indicator of volatility is not suitable for most institutional investors.
Another problem with bitcoin, a representative of Bridgewater Associates noted the low liquidity. According to Patterson, this figure can be increased by creating a regulatory ecosystem to provide investors with comfortable work with cryptocurrencies, reports RBC.
“The more a real regulated ecosystem is developed around bitcoin and other cryptocurrencies, the more other types of investors will start working comfortably with cryptocurrencies. This will bring liquidity. It will reduce volatility,” the expert explained.
At the end of January this year, Bridgewater Associates founder Ray Dalio changed his attitude to cryptocurrency. He wrote about this in the company’s daily newsletter, which is sent to the fund’s clients. Dalio noted that in the future bitcoin may become an asset “like gold” and said he was ready to invest in the main digital currency an amount that he would not mind losing.
On February 24, the head of MicroStrategy Michael Sailor announced the purchase of 19.4 thousand bitcoins worth $ 1.02 billion. Now MicroStrategy has a portfolio of 90.5 thousand bitcoins.