Ray Dalio: Cryptocurrencies And Blockchain Are Great... Let's Call It Digital Gold

JAKARTA – Investor and billionaire Ray Dalio shares his views on cryptocurrencies. According to Dalio, Bitcoin is intended to be a store of value that makes sense and makes sense.

In an interview with CNBC's Squawk Box, Dalio said that Bitcoin's goal as a store of value makes sense and makes sense as part of a diversified portfolio in today's economic conditions.

“I think cryptocurrencies and, in particular, blockchain is great… Call it digital gold, I think digital gold, which is going to be a type of Bitcoin, is something that might be in the interest of diversifying to find alternatives to gold, having a bit of a spot relative to gold and then relatively to other assets," said Dalio.

The head of Bridgewater Associates predicts fiat currencies are entering a phase of rapid 1930s-style devaluation relative to hard goods, services and assets. While BTC is only a small part of his portfolio, he said his flagship crypto asset may prove to be a useful tool for investors looking to hedge against an economic environment filled with hyperinflation and financial turmoil.

“When I say cash is trash, what I mean is, that all currencies in relation to the euro, in relation to the yen, all those currencies, as in the 1930s, are going to be depreciating currencies in relation to goods. and services," he added.

“And we're in an environment where we're going to see: What is an asset? What kind of money can we move between countries, which is a medium of exchange and a store of wealth?” asked the billionaire.

Furthermore, he explained that Bitcoin has had tremendous growth in the last decade. Dalio revealed that he has a small percentage in Bitcoin as part of his portfolio. “I think you have to look at the broader set of assets that serve that purpose,” Dalio said.