The hedge fund manager instead wants to see “inflation-linked money” brought to the masses to ensure consumers protect their purchasing power.
Billionaire investor Ray Dalio has described fiat money as “risky” as a successful treasury but doesn’t believe in Bitcoin.
BTC
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and stablecoins will be the solution.
The founder of hedge fund firm Bridgewater Associates explained on CNBC’s Squawk Box on Feb. 2 that the massive printing of the US dollar and other reserve currencies makes him question whether they are forms of “successful money.”
“We are in a country where money, as we know, is in danger. We print a lot, and it’s not just the United States, all the reserves.”
However, Dalio was quick to add his thoughts on whether Bitcoin is a possible solution, admitting that despite what it has achieved in “12 years,” it is still very difficult to function as a currency:
“It’s not going to be a successful investment. It’s not a successful store owner of wealth. It’s not a successful exchange,” he said.
He also rejected stablecoins as a viable form of currency, as they are copies of government-backed currencies.
Instead, Dalio proposed the creation of an “inflation-linked currency” that would ensure consumers protect their purchasing power.
“The closest thing to that is an inflation-indexed bond, but if you created a currency that says OK, this is purchasing power that I know I can save and invest my money over a period of time and trade anywhere, I think . . . it would be a good coin,” he said.
“So I think you’re going to see the development of coins that you didn’t see that there’s probably going to be an end to attractive, viable coins. I don’t think Bitcoin is it,” he added.
However, not everyone agrees with Dalio’s take on Bitcoin and the currency’s inflation-linked performance.
Digital Manager Eric Weiss of Bitcoin for Family Employees was one, telling his 38,300 Twitter followers that such a coin would never exist:
“According to Ray, [Bitcoin] is very close to being the solution to the world’s problems but it is very volatile. He expects and vaguely describes a solution that does not exist and will not exist,” Weiss said.
ARK Invest CEO Cathie Wood also had a different view on Bitcoin, calling it a hedge against wealth expropriation in parts of the developing world:
“Those calculations need to be replicated, an insurance like Bitcoin,” he said.
Related: Crypto-friendly Ray Dalio exits Bridgewater’s $150M fund
Dalio’s latest views on Bitcoin come despite him once calling it “one hell of a thing” that could serve as an effective hedge against inflation. However, these comments were made on January 28, 2021 – before the current bear market was in effect.
The billionaire investor also recommended that BTC make up 1-2% of the investment portfolio by January 6, 2022.
As an investment product, the hedge fund manager said in May 2021 that he would prefer to buy BTC over bonds, but a few months later he said he still prefers gold.
On October 4, Dalio stepped down as Bridgewater’s chief investment officer, but continued to serve as an adviser.
