Even Ray Dalio, historically skeptical, is now bullish on Bitcoin
The notorious billionaire warned against inflation, advising Reddit users to invest in gold and Bitcoin
Bitcoin (BTC) can offer protection against „depreciation of the value of money“, said the well-known investor Ray Dalio.
During a recent „Ask Me Anything“ session on Reddit, Dalio, who abandoned his scepticism about Bitcoin only two months ago, said that Bitcoin Profit cryptocurrency could be a great investment to supplement gold.
Dalius: Bitcoin could „serve as a diversifier for gold“.
In particular, Dalio wrote:
„I think that over the last decade, Bitcoin and a few other digital currencies have established themselves as interesting alternatives to gold-like assets. They have both similarities and differences with gold and other movable (i.e. not real estate) and limited offer assets.
It could therefore serve as a diversifier for gold and other similar value reserves“.
Dalius revealed his views on various aspects of the global economy, including the current position of the US and China, and the status of legal tender money.
Yields of Bitcoin and other major macro assets over the last 90 days
According to Dalio, money printing will stimulate asset inflation. In other words, in his view, holding one’s wealth in cash will certainly lead to losses:
„We are in a flood of money and credit, which is driving up the price of most assets and distributing wealth in a way that the system, which we now believe to be normal, is unable to sustain. This is threatening the value of our money and credit. […]
Most likely this flood will not stop, so the price of those assets will not decrease if measured in the ever decreasing value of money. It is important to diversify assets in terms of currencies and countries, as well as asset classes“.
A bullish opinion shared by many
His perspective is similar to that of many other Bitcoin supporters, including Michael Saylor, CEO of MicroStrategy, whose company manages nearly $1 billion in BTC assets.
Saylor, in a September interview with „The Bitcoin Standard“ author Saifedean Ammous, pointed out that asset inflation far exceeded cash inflation, comparing large paper money holdings to „melting ice cubes.
Bitcoin valued in gold, graph of the last two years
Dalio is moving further and further away from his position of strong scepticism towards Bitcoin. The first cracks appeared only a few weeks ago, when he admitted that he did not fully understand cryptocurrency:
„I cannot imagine central banks, large institutional investors, companies or multinationals using Bitcoin. If I’m wrong about these things, I’d like to be corrected“.
Nowadays his opinion is much more elastic:
„The important thing is to have some of these assets, i.e. with limited offer, mobile and which are reserves of value, in your portfolio. And you need to diversify, the equities are also good.“
As for the choice between gold and Bitcoin, Dalius preferred not to expose himself too much:
„As for the choice between Bitcoin and gold… I have a strong preference to hold what central banks will also want to hold and trade when they make transactions“.