- Ray Dalio said that one must consider diversifying their portfolio into crypto as fiat is losing its value amid the rising inflation.
- He praised Bitcoin and Ethereum in particular and also admitted holding them in little quantities.
Ray Dalio, the billionaire investor and founder of Bridgewater Associates, openly spoke about cryptocurrencies in his recent interview with Yahoo. Besides, he also admitted to holding the world’s second-largest cryptocurrency Ethereum (ETH) in his portfolio.
Speaking of the current state of the economy, Dalio also said that cash is losing its buying power. Interestingly, Dalio believes that cryptocurrencies are good tools for portfolio ‘diversification’ as well as a remedy to inflation. He also outlined the adoption of popular digital assets like Bitcoin and Ethereum over the last few years. When questioned about his investments in Bitcoin and Ethereum, Dalio said:
Well, I’m not going to give the precise amount of Bitcoin, but I do own some Ethereum as well. But, the answer to your question is that I don’t own a lot of it. I view it as alternative money in an environment where the value of cash money is depreciating in real terms.
And, I think it’s very impressive that for the last 10, 11 years, that programming has still held up, it hasn’t been hacked, and so on, and it has an adoption rate. So, I’m very big on diversification, and it’s a relatively small part of the portfolio.
The U.S. Dollar losing its value over time
Billionaire investor Ray Dalio also warned about the U.S. Dollar losing its value over time and the increasing inflation rates recently. He also noted that everyone should hold some cryptocurrencies in their portfolio. Besides, as per Dalio, people should learn to avoid holding liquid cash stating that inflation is killing their value.
Amid the high inflation rates, Dalio believes that people should consider seeking the best alternative to traditional money. He sees cryptocurrencies to be one of those best alternatives. Dalio has been open for his support of digital assets in the last few months.
He believes that Bitcoin is a great asset ever since its launch. He also praised the Bitcoin technology noting that it hasn’t been ever hacked ever since its inception. However, Dalio believes that Bitcoin will continue to face challenges since it threatens governments and banks. He also noted that while some jurisdictions will ban crypto, others will stick with it. In one of his previous interviews, Ray Dalio said:
Every country treasures its monopoly on controlling the supply and demand. They don’t want other monies to be operating or competing, because things can get out of control. So, I think that it would be very likely that you will have it under a certain set of circumstances outlawed the way gold was outlawed.
Interestingly, Ray Dalio holds a contrasting view on crypto from other leaders in the investment fraternity. Leaders like Bill Gates and Warren Buffett have despised Bitcoin in the past.