Ray Dalio, a wealthy investor and founder of Bridgewater Associates, warned that cryptocurrencies are significant and everyone should keep some. He also said that people should learn to diversify and avoid cash, as ever-higher inflation rates are killing its value.
Dalio said people should now consider looking for better alternatives to traditional money due to current inflation rates. In this regard, he explained that he sees cryptocurrencies as the best alternative to cash at a time when fiat currency is progressively losing its value.
Dalio says cash is losing value, and cryptocurrencies may be the future
Dalio is the founder, president and co-head of investments of Bridgewater Associates. His company deals with governments, equity funds, pension schemes and endowments.
He made these comments in an interview with Yahoo published on December 17. 17, 2021.
He recently said he thinks BTC has been big 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 current inflation rates and said he is concerned about the amount of fiat money that needs to be made. He also noted that credit money is also of concern since the government works on a budget.
He particularly noted that cash is the worst type of investment that can be considered. He explained that he is no longer safe because its value devalues instead of appreciating, causing him to lose his purchasing power. He said most countries have lost 4-5% of the value of their currencies this year due to inflation.
As for inflation indices, he said investors should now refrain from judging their holdings using the regular dollar, but should use the inflation-adjusted one. He also said he sees cryptocurrencies to diversify a portfolio since cash will soon be problematic. Earlier, 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 a lot.
Dalo also added that he thinks BTC will face some challenges as it threatens governments and banks. He said some places will do away with it altogether, but some will keep it. However, he doesn't think the government and their central banks will get a significant amount of BTC.
Billionaires advise investors on cryptocurrencies
Dalio isn't the only billionaire advising investors to invest in cryptocurrencies. Other billionaires like Elon Musk, Bill Gates, Mark Cuban, and Warren Buffet have also said things about cryptocurrencies.
A while ago, Microsoft CEO Bill Gates said he had never bought BTC, but someone gave it to him one day. He went on to say that he kept his gift for some time and sold it at a later time with a price increase. However, he continues to think that BTC is gold for fools and that no one should trade it, not even on reputable platforms like Bitcoin Revolution.
Warren Buffet is another well-known value investor. It does not support BTC or other cryptocurrencies because they are virtual and worthless. Tesla CEO Elon Musk and Mark Cuban think the opposite of Bill Gates and Warren Buffet when it comes to cryptocurrencies. The two have asked people to buy and hold more coins on several occasions, as cryptocurrencies are the future.
