Speaking at the Abu Dhabi Finance Week held in the United Arab Emirates, billionaire investor Ray Dalio addressed the indebtedness affecting major economies around the world and stated that solid currencies such as gold and leading cryptocurrency Bitcoin should be preferred instead of debt assets. Dalio stated that the indebtedness of all major economies except Germany has reached unprecedented levels. Moreover, he claimed that these countries will experience a major debt crisis in the coming years. This stance is strikingly contrary to the approach of Dalio, who has previously taken a negative attitude towards Bitcoin. Nevertheless, Dalio announced that he owned Bitcoin in 2021. Here are all the details…
Ray Dalio shares his cryptocurrency preference
Billionaire investor Ray Dalio shared his preference for gold and Bitcoin over debt assets as indebtedness continues to affect major economies around the world. According to the South China Morning Post, the founder of the world’s largest hedge fund Bridgewater Associates used the following statements in his speech at the Abu Dhabi Finance Week held in the United Arab Emirates:
I want to stay away from debt assets like bonds and debt and have some hard money like gold and bitcoin.
Dalio noted that the indebtedness of all major economies except Germany has increased to ‘unprecedented levels’. According to the SCMP, Dalio also claimed that it was impossible for these countries not to experience a debt crisis in the coming years, which would lead to a massive fall in the value of the currency.
Dalio’s stance has changed
Dalio’s stance is particularly noteworthy given his previous comments. In February 2023, the billionaire told CNBC that he did not like Bitcoin. Dalio claimed at the time that Bitcoin ‘would not be an effective money’. He also noted that Bitcoin is not an effective store of wealth and medium of exchange. In 2020, Dalio cited volatility, limited uses and lack of government control. He made the following statements:
I don’t think cryptocurrencies will succeed in the way people hope.
However, Dalio admitted to owning Bitcoin in 2021. Dalio relinquished control of Bridgewater in October 2022. He had previously stepped down as chairman and CEO of the hedge fund in 2021 and 2017, respectively. Bitcoin faced another violent rejection at the six-digit entry limit. This pushed it sharply lower on Monday evening as the asset plunged towards $94,000. Altcoins fell even harder with multiple double-digit price losses before holding their breath and recovering a bit. Although MicroStrategy announced another mind-blowing purchase of Bitcoin, the value of the cryptocurrency fell really hard, losing nearly six thousand in value within hours.
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