Bridgewater\u2019s director of investment research Rebecca Patterson has said that bitcoin could become digital gold if the cryptocurrency\u2019s volatility drops and its liquidity improves with \u201cregulatory certainty.\u201d<\/p>\n
Patterson\u2019s words came during an interview with Bloomberg, first reported on by Business Insider. During the interview, Patterson revealed she would not call bitcoin an \u201calternative currency\u201d and argued instead the flagship cryptocurrency would be better compared to gold as a store of value.<\/p>\n
https:\/\/youtube.com\/watch?v=QVWbsZogi98%3Ffeature%3Doembed<\/p>\n
She added she believes bitcoin has the potential to become \u201cdigital gold,\u201d but only after problems associated with its volatility, liquidity, and regulatory status are resolved. Patterson pointed out that as institutional investors they can\u2019t say \u201cwith confidence yet\u201d bitcoin will be digital gold.<\/p>\n
The flagship cryptocurrency has value to investors as a hedge against fiat currency inflation, as investors eye crypto while worrying about fiat currencies losing their value with \u201call this central bank printing.\u201d To trigger Bridgewater to invest in the cryptocurrency, she wrote, a few things would have to improve.<\/p>\n
Per the executive, Bridgewater would need to see its volatility drop as \u201cright now bitcoin can move 10% on a tweet, that\u2019s not exactly a store of wealth for most institutional investors.\u201d Moreover, the firm would need to see greater liquidity, which she believes may come from \u201cregulatory certainty.\u201d She said:<\/p>\n
The more you get a real regulatory ecosystem developing around bitcoin and other currencies, the more other types of investors are going to be comfortable coming in, that\u2019s going to bring the liquidity, that\u2019s going to reduce the volatility.<\/p>\n
It\u2019s worth noting most analysts believe regulators stepping in could hinder bitcoin\u2019s growth. This month, Treasury Secretary Janet Yellen\u00a0claimed bitcoin is \u201can extremely inefficient\u201d way to conduct monetary transactions.<\/p>\n
Featured image via Pixabay.<\/p>\n