Ray Dalio warns of 1930s-style currency devaluation and says Bitcoin (BTC) is part of his portfolio
Billionaire hedge fund veteran Ray Dalio says the global financial landscape is now in an environment where investors need to ask what money really is, and that a “digital gold” like Bitcoin (BTC) could be the answer.
In an interview with CNBC’s Squawk Box, Dalio says that Bitcoin’s purpose as a store of value as part of a diversified portfolio makes logical sense in the current economic conditions.
“I think cryptocurrencies and blockchain in particular are great… Let’s call it digital gold, I think digital gold, which would be a kind of bitcoin, is something that’s probably in the interest of diversification, to find alternative gold, has one.” small speck relative to gold and then relative to other assets.”
The head of Bridgewater Associates predicts that fiat currencies will enter a period of rapid depreciation relative to 1930s-style goods, services and tangible assets. Although BTC is only a small part of his portfolio, he says the flagship crypto asset could prove to be a useful tool for investors looking to hedge against a hyperinflationary economic environment and financial turmoil.
“When I say cash is garbage, I mean all currencies relative to the euro, relative to the yen, all these currencies, like in the 1930s, are going to be currencies that are going to go down relative to goods and services. And we’re going to be in an environment where we’re going to look at: What are these assets? What is the kind of money that we can move between countries that is a medium of exchange and a storehouse of wealth?…
Bitcoin has made a tremendous feat over the past 11 years. It’s a tiny percentage of my portfolio. I think the bitcoin people are too busy, I think the gold bugs are too busy, and I think you need to look at the broader range of assets that serve this purpose.”
Dalio, a former bitcoin skeptic, began changing his tune in late 2020 when he decided it could act as a diversifier for gold.
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