Billionaire Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, says it’s “amazing” what bitcoin has accomplished but believes the cryptocurrency is not going to be an effective money, a store of value, or a medium of exchange. Nonetheless, he stressed that “we are in a world in which money as we know it is in jeopardy.”
Billionaire Ray Dalio on Bitcoin
Billionaire investor and hedge fund manager Ray Dalio, who founded the world’s largest hedge fund, Bridgewater Associates, and previously served as its co-chief investment officer, has offered his view on bitcoin in an interview with CNBC Thursday. Referring to the world’s largest cryptocurrency, he said:
I think it’s been quite amazing that for 12 years it’s accomplished … But I think it has no relation to anything … It’s a tiny thing that gets disproportionate attention.
Noting that bitcoin’s total market value is less than a third of Microsoft’s stock, whose market cap stood at $1.92 trillion on Friday, Dalio asserted: “Biotech and many other industries are more interesting than bitcoin.” The billionaire opined:
It’s not going to be an effective money. It’s not an effective storehold of wealth. It’s not an effective medium of exchange.
“But we are in a world in which money as we know it is in jeopardy … We are printing too much, and it’s not just the United States, all the reserve currencies,” he continued, mentioning problems with the euro and the Japanese yen in particular. “And so in that world, the question is, what is money and how’s that going to operate? So when we look at something like China’s renminbi, and then you take the digital renminbi, I think you’re going to see that become more and more a thing,” Dalio shared.
The Bridgewater Associates founder stressed, “if you want a digital currency, you have to do something different” from bitcoin. However, he noted: “I don’t think that the stablecoins are good because then you’re getting a fiat currency again.” He added:
What would be best is an inflation-linked coin. In other words, something where basically you would say, okay, this is going to give me buying power because every individual wants. What do they want? They want to secure their buying power.
“The closest thing to that is an inflation index bond and so on,” Dalio said. “But if you created a coin that says, okay, this is buying power that I know I could save in and put…
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