Billionaire Investor Ray Dalio Still Not a Fan of Bitcoin
While still not convinced by Bitcoin, billionaire investor Ray Dalio believes a cryptocurrency with anti-inflation properties could have greater potential.
Ray Dalio, the billionaire founder of Bridgewater Associates, has maintained his critical stance on the world’s largest cryptocurrency, Bitcoin.
In a recent interview with CNBC, Dalio commented:
“[Bitcoin] is not a good currency. It’s not even an effective store of value. It’s not a useful medium of exchange.”
"#Bitcoin has no relation to anything. It's a tiny thing that gets disproportionate attention," says @RayDalio on #crypto. "The value of $BTC is less than 1/3 of $MSFT stock. It's not an effective store of wealth. But we are in a world where money as we know it is in jeopardy." pic.twitter.com/Cc7o2TwkxG
— Squawk Box (@SquawkCNBC) February 2, 2023
According to Dalio, Bitcoin's value is too volatile, preventing it from achieving the purposes it claims to offer. The market capitalization of BTC remains too low and doesn’t align with other aspects, further limiting its potential for global payment use.
Dalio also expressed skepticism toward stablecoins, describing them as mere digital versions of fiat currencies that central banks have been printing indiscriminately. “We live in a world where the concept of money is being threatened,” said the founder of Bridgewater Associates.
However, Dalio shared his thoughts on what makes a good currency, emphasizing the importance of inflation resistance:
“What do we all want? We want our purchasing power to be preserved. If we could create a coin that can confidently say, ‘It can maintain the purchasing power of goods over time, allowing users to store value and transact anywhere,’ I believe that would be a good currency.”
Ray Dalio’s comments have caught the attention of Binance CEO Changpeng Zhao, who expressed admiration for the billionaire but acknowledged that he has yet to convince Dalio to enter the crypto space.
Have I managed to get Ray into crypto? Not yet. I have been busy learning from him, and there is just so much to learn. Ray is an extremely humble guy. He understands money better than anyone. Yet he often humbly says he doesn’t understand enough about crypto. 3/5
— CZ 🔶 BNB (@cz_binance) February 3, 2023
Despite his criticism of Bitcoin, Ray Dalio admitted in 2021 that he had altered his perspective on cryptocurrencies, leading him to invest a small amount in the two largest coins, Bitcoin and Ethereum.
