After changing his skepticism, Dario, the founder of Bridgewater Fund, praised Bitcoin again
Ray Dalio, a new Bitcoin bull, stated that Bitcoin (BTC) can prevent “currency devaluation.”
On December 8th, in the “Ask Me Anything” event on the Reddit website, Dalio stated that Bitcoin serves as a supplement to gold investment. Last month, Dalio has changed his skepticism about Bitcoin.
Dalio: Bitcoin “may become a diversified asset substitute for gold”
He wrote: “I think Bitcoin (and some other digital currencies) has established its position as an interesting alternative to gold assets in the past ten years. It is incompatible with gold and other liquid assets with limited supply (unlike gold). Real estate) has both similarities and differences.”
“Therefore, it can become a diversified asset substitute for gold and other such asset storage methods.”
Dalio elaborated on his views on various aspects of the global economy, including the current position of the United States and the state of legal tender.
He also pointed out that printing money will stimulate asset inflation, which means that holding assets only in the form of cash will lead to losses.
He warned: “We are in the midst of a torrent of money and credit. This torrent is pushing up the prices of most assets and distributing wealth in a way that we think normal systems cannot do, and this system is threatening currency And the value of credit.”
“This torrent is likely not to recede, so when measured by the value of a depreciated currency, these assets will not decrease. Achieving good diversification in currencies, countries and asset classes is very important.”
Familiar BTC bull market
His views clearly emulate the views of Bitcoin supporters, especially MicroStrategy CEO Michael Saylor, who is leading the company to expand its Bitcoin reserves to nearly $1 billion.
In September of this year, Saylor emphasized in an interview with “Bitcoin Standard” author Saifedean Ammous that asset inflation far exceeds cash inflation, so holding a large number of banknotes is like “melting ice.”
Therefore, just a few weeks ago, Dalio admitted that he “may have ignored the nature of Bitcoin” and his skepticism about Bitcoin gradually eased. Nevertheless, he did not advocate “investing the total investment portfolio in Bitcoin”.
“The key is to hold and diversify such assets, including stocks (limited supply, liquidity, and storage of wealth) in the portfolio. Not many people do this.”
Dalio’s attitude towards gold is even more unclear. He said that the choice between gold and bitcoin will depend on the behavior of the central bank.
He concluded: “In terms of Bitcoin versus gold, I strongly prefer things that the central bank is trying to hold and want to use in exchange for value when trading.”
