TL;DR Breakdown
- The founder of Bridgewater Associates, Ray Dalio, reveals that crypto investments are a part of his portfolio.
- He said that cash is the worst investment since the spiking inflation rates are eating it away.
Ray Dalio, a wealthy investor and the founder of Bridgewater Associates, warned that cryptocurrencies are significant and everyone should hold some. He also said people should learn to diversify and avoid liquid cash since the ever spiking inflations rates are killing its value.
Dalio said people should now consider seeking the best alternatives to traditional money due to current inflation rates. Regarding that matter, He explained that he views cryptocurrency as the best alternative to cash in a time where fiat currency is losing its value progressively.
Dalio says that cash is losing value, and cryptos may be the future
Dalio is the Founder, Chairman, and Co-Chief Investment Officer of Bridgewater Associates. His firm deals with governments, wealth funds, pension schemes, and endowments.
He made these comments in an interview with Yahoo published on DEC. 17, 2021.
He recently said that he thinks BTC has been great ever since its launch. He also noted that the technology behind it has been intact since no one has ever hacked it, and it is also gaining in its adoption rate. Dalio also raised his concerns regarding the current inflation rates and said that he is worried about the amount of fiat of cash that has to be made. He also noted that the money in credits is also worrying since the government works with a budget.
He particularly noted that cash is the worst type of investment anyone can consider. He explained that it is no longer safe since its value depreciates rather than appreciating, making it lose its purchasing power. He said that most countries lost 4-5% of their monies value this year due to inflation.
Regarding the inflation ratios, he said that investors should now refrain from judging their holdings using the regular dollar but should use the inflation-adjusted one. He also said he views crypto to diversify a portfolio since cash will be problematic soon. Previously, Dalio also revealed that he holds some BTC, and in the last week, he also said he has some ETH even though it’s not much.
Dalo also added that he thinks BTC will face some challenges since it threatens governments and banks. He said some places would do away with it entirely, but some will stick with it. However, he does not think that the government and their Central Banks will get a significant amount in BTC.
Billionaires advise investors regarding cryptocurrency
Dalio is not the only billionaire to advise investors regarding investing in cryptocurrencies. Other billionaires like Elon Musk, Bill Gates, Mark Cuban, and Warren Buffet have also said things regarding cryptocurrencies.
Some time ago, Microsoft’s CEO Bill Gates said that he had never bought BTC, but someone gave him as a present one day. He went ahead to say that he held his gift for some time and sold it at a later date with a price increase. However, he still thinks that BTC is a fool’s gold and no one should trade it.
Warren Buffet is another well-known value investor. He does not support BTC or other cryptocurrencies because they are virtual and valueless. Tesla’s CEO, Elon Musk, and Mark Cuban think the opposite of Bill Gates and Warren Buffet regarding cryptos. The two have asked people to buy and hold more coins on different occasions since crypto is the future.
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