Friday, January 28

“Cryptocurrencies are awesome,” says billionaire Ray Dalio

For Ray Dalio, cryptocurrencies are impressive, he says in a recent interview with Yahoo Finance, in which the billionaire commented on a number of issues.

In recent months, Ray has confessed for the first time to being a possessor of Bitcoin as a store of value. A critic of the US Central Bank’s monetary policies, he is a well-known hedge fund manager.

Ray Dalio is also known as the founder of Bridgewater Associates, established in 1975 and operating billions of dollars from clients around the world. With a fortune estimated at $20 billion, he is named by Forbes as the 96th richest man today.

“Cryptocurrencies are awesome,” described Ray Dalio

This Friday (17), Yahoo Finance published an interview with Ray Dalio, in which the billionaire investor mentioned that cryptocurrencies are impressive.

Asked what and how much he owned, Dalio said he could not provide how much he invests in Bitcoin, but revealed that he is an investor in Ethereum as well. Anyway, he declared that he doesn’t have much investment in these technologies.

“It is an alternative to gold for a younger generation and it has no intrinsic value, but it has an imputed value and therefore some merit.”

In the billionaire’s opinion, cryptocurrencies are an alternative to fiat money, which is devaluing in real terms, a phenomenon known as inflation. In that same interview, Ray Dalio even said he is worried about inflation, which is eating away at Americans’ wealth.

“I find it very impressive that, in the last 10, 11 years, this schedule has still been maintained. [O Bitcoin] It wasn’t hacked, and so on. And it has an adoption rate.”

He argued that those who made money stock created by the central bank, in particular the Dollar, made the worst investment of 2021, as purchasing power fell with inflation. In Brazil, the expectation is that the year will close with inflation above 10% in 2021, which will be the biggest record since 2015.

In this way, Ray Dalio defended that people diversify their investments and be careful about keeping too much money as “equity”.

Inflation is eating away at fiat money

In his view, the one who is most harmed in this story is the one who keeps their money in cash, arguing that people should earn at least as much as they spend.

The tycoon also maintained that there is no country that has not failed with the loss of its purchasing power, indicating that the United States risks going bankrupt if the situation worsens. It is worth remembering that rising inflation, with high unemployment rates and low productivity, may be fundamental for more serious problems in the economy to appear.

In Brazil, Economy Minister Paulo Guedes has already signaled economic activity should be low in 2022, at the same time as the announcement by the president of the Central Bank, who agrees with concern increases in core inflation.