Bitcoin could become ‘digital gold’ if volatility and liquidity issues subside with ‘regulatory certainty’, Bridgewater says

Bitcoin could become ‘digital gold’ if volatility and liquidity issues subside with ‘regulatory certainty’, Bridgewater says

Bitcoin could become "digital gold" if volatility and liquidity issues subside with "regulatory certainty," according to Bridgewater's director of investment research Rebecca Patterson.

Patterson sat down with Bloomberg on Wednesday to discuss her firm's investment strategy, and the topic of bitcoin quickly came up.

The director said she "wouldn't call bitcoin an alternative currency" and argued that, if anything, the better comparison is to gold.

Patterson noted she believes bitcoin has the potential to become "digital gold" in the future, but current regulatory, volatility, and liquidity issues have kept Bridgewater away for now.

"As institutional investors, we don't know yet if it's going to be digital gold, it may be over time, but I don't think we can say that with confidence yet," Patterson said.

She highlighted bitcoin's value to investors as a hedge against fiat currency inflation in the interview. 

"It is something that investors have been looking to as they worry about fiat currencies being devalued by all this central bank printing," she said.

When asked what the trigger would be that would signify bitcoin is in fact "digital gold," Patterson said there isn't "one green light" for Bridgewater, but there are a few things the firm is looking for.

First, Bridgewater needs to see lower