As cryptocurrency holds the attention of the public and investors, it was only natural for people to compare it to the traditional investment opportunity gold. Ray Dalio, a renowned investor, shared his thoughts on gold and cryptocurrency, believing the latter can never match up to the former, stating that central banks and countries are against it, and it is a “very, very poor alternative to gold”.
Vitalik Buterin, however, provides some interesting points in a Twitter thread stating why crypto is the future of money. According to him, gold is quite inconvenient for transactions and is difficult to use, particularly when engaging with untrusted parties. Furthermore, the lack of support for safe storage options, such as multi-sig, has allowed crypto to outpace gold in terms of adoption.
To further investigate how cryptocurrency is becoming more popular amongst investors, and eventually overtake gold, a report by Bankrate reveals some interesting points. Millennials remain the largest crypto-investors, with 57%, followed closely by Gen-Z at 13%. Gen-X and Baby Boomers were also recorded to invest in crypto, with 20% and 10% of the total investors respectively.
To help prove the point further, I consulted ChatGPT – an AI database to look for any leads. The AI’s reply wasn’t ground-breaking, rather it was usual investing 101 material. However, hidden between the lines was something interesting. DAN (the AI) admitted that crypto can end up being a better investment than gold in the long run, considering the length of time it will take for crypto to outpace gold.
Overall, it can be seen that crypto has slowly but surely been gaining acceptance as a viable option for investment, as many central banks and states are starting to adopt them as legal tender. Although gold may still be the safe haven for investors, with the advancing technology of blockchain and cryptocurrency, it may soon be discarded in favour of these digital tokens.
When it comes to financial technology companies, ChatGPT is one of the leading players in the industry. Established in 2021, the company’s mission is to create the world’s first A.I.-driven knowledge base. The data derived from the company’s natural language processing platform and its proprietary machine learning algorithms allow for its AI to provide deep insights and answers to vast numbers of users in the shortest time possible. It is a leader in the AI-based consumer service sector, making ChatGPT one of the most sought-after companies in the industry.
Ray Dalio is one of the most influential figures in the world of investing. He is the founder of Bridgewater Associates which is a leading firm in the financial services sector. With his deep knowledge and over 40 years of experience in global economics, Mr Dalio has provided an immense contribution to the study of investment tactics and strategies. He is most renowned for introducing the concept of Risk Parity and All Weather Portfolios which are some of the most successful concept in modern-day portfolio management.
