The Three Major Conditions for the World's Largest Hedging Fund to Invest in Bitcoin

Recently, the Chief Investment Officer of Bridgewater Associates, the world's largest hedge fund company, elaborated on three key conditions that the company considers necessary for investing in Bitcoin during a media interview.

The primary condition is a significant reduction in Bitcoin's volatility. Currently, Bitcoin's volatility is about ten times that of the US dollar, and even higher than that of the Venezuelan currency, the bolívar. The research director emphasizes that for Bitcoin to become a diversified investment tool, its stability must first be improved.

Secondly, the Bitcoin market needs to have stronger liquidity. This means that trading is more frequent, buying and selling are more convenient, and large transactions can be conducted quickly without significantly affecting the price.

The third condition is a clear regulatory framework. The research director pointed out that as a more complete regulatory ecosystem is established around Bitcoin and other cryptocurrencies, it will attract a more diverse group of investors. This will not only bring more liquidity but also further reduce market volatility. She particularly emphasized that regulatory certainty is her main concern, but it is still unclear when the United States will establish a clear regulatory system.

Moreover, the research director stated that she personally believes Bitcoin cannot be considered a currency in the traditional sense. However, over time, Bitcoin may gradually evolve into a "digital gold," playing a role similar to that of gold in investment portfolios.

It is worth mentioning that Bridgewater Associates was founded in 1975 and currently manages assets exceeding $150 billion. Last month, the founder of the fund publicly praised Bitcoin as "a remarkable innovation" and stated that they are closely monitoring the development of this digital asset.