Ray Dalio, founder of Bridgewater Associates, called Bitcoin a hard asset and said he prefers BTC and gold over debt-based investments.
Ray Dalio, a billionaire investor, indicated apprehension regarding a potential “pending debt money problem” in global finance and recommended a transition to hard assets such as gold and Bitcoin.
Ray Dalio, the founder of Bridgewater Associates, one of the world’s largest hedge funds, stated that he would refrain from investing in debt assets and instead invest in “hard money” such as gold and Bitcoin, according to the South China Morning Post on December 10.
The seasoned investor emphasized that the present levels of indebtedness in all major countries, including the United States and China, are “unprecedented” and will not be sustainable.
Dalio stated in a speech at a financial conference in Abu Dhabi that these countries cannot avoid a debt crisis in the future, which will result in a significant decrease in the value of money.
“Avoid Debt Assets, Such As Bonds, Debt”
According to Dalio, debt is one of the five major elements that influence the global economy, along with money, the economy, internal political order, and external geopolitical order.
“I anticipate that there will be a pending debt money problem,” he stated.
“Refrain from becoming overly engrossed in the daily headlines and instead, focus on the major forces,” he advised. He also added:
“I want to steer away from debt assets like bonds and debt and have some hard money like gold and Bitcoin.”
Dalio previously held the belief that cryptocurrencies such as Bitcoin would not achieve the level of success that was anticipated; however, in recent years, he has become a significant advocate for BTC.
Dalio stated in 2022 that it is reasonable to allocate up to 2% of an investment portfolio to Bitcoin in addition to gold as a hedge against inflation.
The billionaire investor previously stated that he would continue to favor gold over Bitcoin, emphasizing the significance of diversification.
Gold Bug Peter Schiff Encourages Biden To Sell Dump Bitcoin
As US President-elect Donald Trump prepares to assume office in January, Dalio’s recognition of Bitcoin as a physical asset is timely. Many anticipate the establishment of a US Bitcoin national reserve in 2025.
Nevertheless, certain financial analysts, such as gold advocate Peter Schiff, have suggested that the potential consequences of establishing a Bitcoin reserve in the United States could be “unfavorable.”
On December 9, Schiff appeared on X to propose that the President Joe Biden administration could accomplish “one good thing” before departing office by selling all of the Bitcoin that the US government presently possesses.
“The funds raised would not only alleviate the 2024 budget deficit, but it would also put an end to the absurdity of establishing a “Strategic” Bitcoin Reserve that would be detrimental,” Schiff stated.
