Ray Dalio still has a ‘small percentage’ of his portfolio in Bitcoin.


Bridgewater Associates founder Ray Dalio confirmed on Tuesday that a “small percentage” of his portfolio was allocated to Bitcoin. He acknowledged that it could play a special role among a wide range of safe haven assets in today’s global inflationary environment.

cash is still garbage

CNBC’s Andrew Sorkin in a conversation with Dalio repeat His “cash is garbage” proposition is true because of the rate at which holders lose their purchasing power. Annual US CPI inflation in April was 8.3%, down 0.2% from its 40-year high in the previous month.

To combat this, the Fed has decided to raise rates more aggressively than it has in the past two decades. But these austerity measures are already taking a toll on stocks, which Dalio calls “garbage” rather than cash.

“The question is, what will bring you real returns,” he explained. “We have shifted to an environment like in the ’70s, where high-performing assets (real return assets) are the best investments.”

The billionaire believes the Fed’s actions to fill the economy with money and credit have created unprecedented debt, which will result in “negative real returns” overall. From a diversification point of view, he noted that Bitcoin deserves a small role in its portfolio serving as “digital gold.”

Bitcoin: Gold or Money?

This nickname is a common name for Bitcoin due to its limited supply issuance schedule designed to mimic physical gold. Hedge fund manager Paul Tudor Jones even considered the latter to be superior, threatening the dominance of central bank-produced fiat currencies.

Dalio’s discussion of assets is headed in the following direction.

“I think we’re in an environment where we can ask ‘what’s the new money’,” he said. “What type of money can be moved between countries? It is a medium of exchange and a store of wealth.”

Dalio says he thinks Bitcoiners and Goldbergs are “too preoccupied” with Bitcoin, but noted that they have had “great achievements” over the past 11 years and that they account for a “small percentage” of their wealth.

Dalio once criticized Bitcoin and cryptocurrencies as “against the purpose of money,” but over the past two years has turned to seeing them as alternatives to gold. Nevertheless, investors have previously said that if the cryptocurrency grows too big, the government will eventually cut it.

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