Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, said he prefers investing in “hard money” such as bitcoin and gold over debt assets, given high global indebtedness.
in letter At the Abu Dhabi Financial Week conference, the veteran investor pointed to “unprecedented levels” of debt witnessed by all major countries, including the United States and China, stressing that the current levels are unsustainable.
Dalio said: “It is impossible that these countries will not be able to face a debt crisis in the coming years that would lead to a significant decline in the value (of money).”
He added that he wants to “stay away from debt assets such as bonds and debt, and acquire some hard money such as gold and bitcoin.” Dalio sees Bitcoin and gold as stable hedges against economic uncertainty.
The billionaire investor wasn’t always keen on Bitcoin. Previously, Dalio believed that cryptocurrencies would not succeed as hoped. But he has emerged as a major advocate for Bitcoin in recent years.
In 2022, Dalio said Allocating up to 2% of the portfolio to Bitcoin, in addition to gold, is a reasonable hedge against inflation.
Dalio’s take legitimizes bitcoin as a hedge against unsound monetary policies. As countries continue to devalue fiat currencies, Bitcoin’s steady supply makes it a safe haven.
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