Ray Dalio, founding father of the world’s largest hedge fund Bridgewater Associates, mentioned he prefers investing in “hard money” like bitcoin and gold over debt property, given rising international indebtedness.
In a speech on the Abu Dhabi Finance Week convention, the veteran investor referred to “unprecedented levels” of debt seen in all main nations, together with the US and China, stressing that present ranges are unsustainable.
“It is impossible for these countries to be able to not have a debt crisis in the years ahead that will lead to a great decline of [money] value,” Dalio mentioned.
He continued that he needs to “steer away from debt assets like bonds and debt, and have some hard money like gold and bitcoin.” Dalio sees bitcoin and gold as steady hedges in opposition to financial uncertainty.
The billionaire investor was not all the time so eager on bitcoin. Beforehand, Dalio believed crypto wouldn’t succeed as hoped. However he has emerged as a serious bitcoin advocate lately.
In 2022, Dalio mentioned allocating as much as 2% of a portfolio to bitcoin, along with gold, is cheap to hedge in opposition to inflation.Â
Dalio’s take additional legitimizes bitcoin as a hedge in opposition to unsound financial insurance policies. As nations proceed debasing fiat currencies, bitcoin’s mounted provide makes it a secure haven.
