Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, said he prefers to invest in “hard currencies” such as bitcoin and gold rather than debt assets, given the rise in global debt.
In a speech at the Abu Dhabi Finance Week conference, the veteran investor spoke of the “unprecedented levels” of debt seen in all major countries, including the United States and China, stressing that current levels are unsustainable.
“It is impossible that these countries cannot have a debt problem in the coming years, which will lead to a significant decrease in debt. [money] value,” said Dalio.
He went on to say that he wants to “move away from debt assets like bonds and debt, and have hard money like gold and bitcoin.” Dalio sees bitcoin and gold as stable hedges against economic uncertainty.
The billionaire investor wasn’t always bullish on bitcoin. Previously, Dalio believed that crypto would not succeed as expected. But he has emerged as a major advocate of bitcoin in recent years.
In 2022, Dalio said that allocating up to 2% of the portfolio to bitcoin, in addition to gold, makes sense to protect against inflation.
Dalio’s take also validates bitcoin as a hedge against irrational monetary policies. As nations continue to debase fiat currency, the constant supply of bitcoin makes it a safe haven.
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