Contents
Billionaire investor Ray Dalio sounded the alarm on the fate of fiat currency as a secure repository for wealth.
Additionally, he remains skeptical that cryptocurrencies like Bitcoin and stablecoins will come to the rescue.
On Feb. 2, the mastermind behind Bridgewater Associates took to CNBC’s Squawk Box to voice his concerns regarding the rampant printing of money in the U.S. and other major currencies.
He questioned the efficacy of these currencies as forms of “effective money.”
“Our world is facing a financial crisis, with money losing its worth due to too much printing happening everywhere, not just in the US.”
The brand new newsletter with insights, market analysis and daily opportunities.
Let’s grow together!
However, Dalio quickly weighed in on Bitcoin as a potential answer, acknowledging its impressive achievements in just 12 years.
Regardless, he switched tones and noted that its extreme volatility prevents it from functioning as a stable form of currency.
“Bitcoin falls short as a currency, lacking the ability to hold wealth or efficiently facilitate transactions,” he argued.
Furthermore, he also dismissed stablecoins as a viable option for money, as they merely imitate state-endorsed fiat currencies.
In lieu of current options, Ray Dalio put forth the idea of an “inflation-linked coin” designed to protect consumers’ purchasing power.
Moreover, Dalio stated that the closest equivalent to such a coin would be an inflation index bond. On top of that, he believes that a coin that guarantees its buying power, is easily saved, and transactable anywhere, would be a valuable currency. “I think that would be a good coin,” he stated.
“In the future, I predict the emergence of more compelling and practical cryptocurrencies. I don’t believe that Bitcoin will be the one,” he added.
Eric Weiss, CEO of Blockchain Investment Group, vehemently disagreed with Dalio’s views. He took to Twitter to inform his 38,300 followers that such a coin is not a feasible concept.
“Ray believes that Bitcoin is almost the answer to the world’s issues, but its instability holds it back. Ray is searching for a solution that does not, and cannot, exist,” said Weiss.
Cathie Wood, ARK Invest CEO, held a contrasting viewpoint on Bitcoin, viewing it as a means of safeguarding wealth from confiscation in certain developing countries.
“Those populations need a fallback, an insurance policy like Bitcoin,” she said.
Another opinion:
Dalio’s current stance on Bitcoin contrasts with his previous statement, in which he dubbed it “one hell of an invention” with the potential to act as a shield against inflation. This statement was voiced on January 28, 2021, preceding the arrival of the ongoing bear market.
In the past, the billionaire investor had even recommended that BTC should occupy 1-2% of an investor’s portfolio, as stated on Jan 06, 2022.
During his time as a hedge fund manager back in 2021, Dalio expressed that he would opt for investing in BTC over bonds.
Dalio’s thoughts were toing and froing because, just a few months later, he still expressed a preference for gold as an investment product.
U.S. Senators Elizabeth Warren and Bill Cassidy are taking action to combat the use of…
A unique turn of events unfolded for pre-order holders of Solana's 'Chapter 2' mobile phone,…
A recent advisory from the Federal Bureau of Investigation (FBI), advising against the use of…
In a move to tackle money laundering, the European Parliament has approved new regulations imposing…
Since its introduction following Bitcoin's halving event on April 20, Runes, a novel token standard…
Following the euphoria of Bitcoin's recent halving event, miners are now grappling with a stark…