Bitcoin Holder Ray Dalio Jumps Into Aether, Praising Crypto As He Calls Cash “Worst Investment” | Currency News | Financial and business news

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Ray Dalio.

Eoin Noonan / Web Summit via Getty Images

Hedge fund titan Ray Dalio has revealed he has ether and explained why cryptocurrencies are awesome. Crypto is an alternative in an environment where the value of money is falling, said the IT director of Bridgewater Associates. He called cash the “worst investment” and “problematic asset” which will lose 4 to 5% due to inflation. Sign up here for our daily newsletter, 10 things before the opening bell.

Hedge fund titan Ray Dalio described the cryptocurrency as “impressive” as he confirmed he holds ether in addition to bitcoin and said silver may well be the “worst investment”.

The billionaire investor was skeptical of the bitcoin “bubble” for years, but a change of mind this year saw him buy the leading cryptocurrency.

In an interview with Yahoo Finance on Thursday, Dalio revealed that he has added Ether to his wallet, but said he does not own much of the bitcoin or Ethereum’s native token.

“I’m not going to give the exact amount of bitcoin or – but I also own ethereum,” he told Andy Serwer. “I don’t own a lot.”

Dalio, founder and co-chief investment officer of the world’s largest hedge fund, Bridgewater Associates, told Yahoo he is a strong advocate of diversification and that cryptocurrencies are “a relatively small part” of his portfolio. .

He explained why he thinks digital assets are a good investment.

“I see it as an alternative currency in an environment where the value of cash is depreciating in real terms,” he said.

“And I think it’s very impressive that over the last 10 to 11 years this programming has always held up. It hasn’t been hacked, etc. And it has an adoption rate.”

The adoption of bitcoin by the financial public continues to grow. Meanwhile, the promise of decentralized finance, or DeFi – to weed out traditional banks and other transaction intermediaries – has spurred interest in Ethereum.

Cryptocurrencies hit new highs in November, as institutional money began to flow into the digital token economy.

So far this year, bitcoin and ether are up 62% and 420% respectively, according to data from TradingView. But they have retreated recently, with bitcoin trading down 3.5% and ether down 5.4% on Friday.

These developments have silenced or changed the opinion of crypto critics such as Howard Marks, as well as Dalio himself.

Problematic asset

The billionaire, who previously compared cash to garbage, reiterated his aversion to fiat currency, calling it the poorest investment. The debasement of fiat currency – the result of governments’ unprecedented fiscal stimulus measures to help economies weather the pandemic – has made assets like bitcoin more resistant to inflation, he argued.

“Cash – which most investors think is the safest investment – is, I think, the worst investment,” Dalio said in the interview.

“Don’t judge anything about your returns or your assets in nominal terms, in terms of how many dollars you have. See it in terms of inflation-adjusted dollars,” he added.

“And so the money – like, this year you will lose 4% or 5% because of inflation. And so watch out for those, because I think this will be the worst investment.”

In November, the rate of consumer price inflation in the United States hit its highest level in nearly 40 years. Dalio, who called cash a “very bad asset,” noted skyrocketing inflation would reduce his purchasing power.

“The message is this: cash is going to be a problematic asset,” he said.

“Keep that other diversified portfolio of assets – keep it, looking at it in real terms, not nominal terms. And that diversification should also be international diversification against countries, not just asset classes,” in order to have a really well diversified portfolio. ”

Read more: Particle physicist turned crypto founder explains why Ethereum’s Layer 2 scaling solutions will be a big deal in 2022 – and why developers are sticking with Ethereum despite the rise more Layer 1 platforms this year

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