{"id":189497,"date":"2021-02-26T12:49:06","date_gmt":"2021-02-26T09:49:06","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-needs-clear-regulations-to-be-less-volatile-bridgewater-analyst-says\/"},"modified":"2021-02-26T12:49:06","modified_gmt":"2021-02-26T09:49:06","slug":"bitcoin-needs-clear-regulations-to-be-less-volatile-bridgewater-analyst-says","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-needs-clear-regulations-to-be-less-volatile-bridgewater-analyst-says\/","title":{"rendered":"# Bitcoin needs clear regulations to be less volatile, Bridgewater analyst says"},"content":{"rendered":"

“# Bitcoin needs clear regulations to be less volatile, Bridgewater analyst says <\/strong>”
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A senior analyst at asset management firm Bridgewater believes that regulation could potentially make Bitcoin (BTC) a good asset for institutional investors.<\/p>\n

Bridgewater director of investment research Rebecca Patterson claimed that regulatory certainty around Bitcoin would solve some of the cryptocurrency\u2019s biggest problems associated with high volatility and low liquidity.<\/p>\n

In a Feb. 24 interview<\/a> with Bloomberg, Patterson said that issues like volatility and liquidity remain the main hurdles for Bridgewater\u2019s potential move into Bitcoin.<\/p>\n

\u201cRight now Bitcoin can move 10% on a tweet, that\u2019s not exactly a store of wealth for most institutional investors. So the volatility of Bitcoin is about 10 times that of your dollar, it\u2019s still double that of the Venezuelan bolivar,\u201d the executive said.<\/p>\n

Patterson went on to say that both the volatility problem and liquidity issues would subside if Bitcoin becomes a better-regulated asset:<\/p>\n

\u201cThe 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 liquidity, that\u2019s going to reduce the volatility.\u201d<\/p><\/blockquote>\n

\u201cSo I guess if there was one thing I were watching first, it would be seeing more regulatory certainty,\u201d Patterson said, adding, \u201cI’m not sure when that\u2019s going to come in the U.S.\u201d\u00a0<\/p>\n

Patterson also said that she doesn\u2019t look at Bitcoin as an \u201calternative currency\u201d but rather as digital gold. \u201cIf anything, it\u2019s an alternative to gold or digital gold. I think that would be the better comparison,\u201d she said. Patterson said that many investors have been looking to Bitcoin over concerns about inflation triggered by central bank money printing. However, for Bridgewater, Bitcoin still needs to prove its status as digital gold:<\/p>\n

\u201cAs institutional investors, we don’t know yet if it\u2019s going to be digital gold, it may be over time, but I don\u2019t think we can say that with confidence yet. And that affects whether or not our client should own it.\u201d<\/p><\/blockquote>\n