Home News ‘I’d rather Bitcoin over bonds’: Billionaire investor Ray Dalio

‘I’d rather Bitcoin over bonds’: Billionaire investor Ray Dalio


The founder of hedge fund Bridgewater Associates, Ray Dalio, told Coindesk that he owns Bitcoins. Dalio, a prominent figure in the world of finance, is worth $ 20.3 billion, according to Forbes. According to him, in the current environment, the main cryptocurrency looks like a more attractive store of value than gold. Dalio argues that the US dollar is on the verge of devaluing to levels last seen in 1971, and China is threatening the dollar’s role as the world’s reserve currency.

“Personally, I would rather have Bitcoin than a bond. I have Bitcoins”, said Dalio.

Comments from the founder of Bridgewater Associates suggest that he may be gradually adopting a preference for Bitcoin and crypto assets in general, which he previously expressed skepticism about.

He also expressed concern that government regulators could take harsh measures against cryptocurrencies and their owners. Back in March, the billionaire announced the high likelihood of a Bitcoin ban in the United States.

The billionaire suggested that many states could outlaw Bitcoin when it becomes a serious competitor to traditional financial instruments. Governments will be forced to take harsh measures if people start selling fiat bonds en masse to buy Bitcoin.

“The biggest risk for Bitcoin is its success”, added the investor.

Speaking about Bitcoin, Dalio noted that in terms of transaction efficiency, he sees the future also in the digital asset Ethereum. Meanwhile, he believes that if we compare the capitalization of Bitcoin (about $ 1 trillion) and the cost of all marketable gold ($ 5 trillion) minus what is in the central banks of the countries of the world, as well as gold jewelry, then Bitcoins are currently occupy about 20%, that is, an impressive amount, of what investors invest in the precious metal.

From denial to acceptance: how Dalio went over to the cryptocurrency side

Dalio has repeatedly changed his attitude towards digital assets. In 2017, he called the first cryptocurrency a bubble, but recognized its performance “at a conceptual level”.

Then, in January 2020, the billionaire stated that volatile Bitcoin doesn’t function as money. In November, Dalio added that the asset can never replace gold, as the monetary authorities will “strangle” it.

In December of that year, the founder of Bridgewater Associates changed his mind. Describing Bitcoin as an “interesting” alternative to gold.

At the end of February, Bridgewater Associates said they were ready to invest in Bitcoin. But if its volatility decreases and liquidity increases.

In January of this year, Bridgewater Associates founder Ray Dalio changed his attitude towards cryptocurrency. He wrote about this in the company’s daily newsletter, which sent to the fund’s clients. Dalio noted that in the future, Bitcoin could become an asset “like gold” and announced its readiness to invest in the main digital coin an amount that he would not mind losing. Bridgewater Associates is the world’s largest hedge fund serving institutional clients including retirement funds, non-profit organizations, foundations, governments and central banks around the world.

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