The well-known 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 skepticism about Bitcoin only two months ago, said that 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 past decade, Bitcoin and some other digital currency 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”.
Dalio revealed his opinion on various aspects of the global economy, including the current position of the United States and China, as well as the status of legal tender money.
According to Dalio, money printing will stimulate asset inflation. In other words, in his opinion, 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, therefore the price of those assets will not decrease if measured in the ever decreasing value of money. It is important to diversify well in terms of currencies and countries, as well as in terms of 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 author of “The Bitcoin Standard” Saifedean Ammous, pointed out how the inflation of the assets themselves far exceeded that of cash: he then compared large holdings of paper money to “melting ice cubes.
Dalio is moving further and further away from his position of strong skepticism 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 own some of these assets, i.e. with limited offer, mobile and which are reserves of value, in your portfolio. And it is necessary to diversify, the equities are also good.
Regarding the choice between gold and Bitcoin, Dalio preferred not to expose himself too much:
“As for the choice between Bitcoin and gold… I have a strong preference to hold what the central banks will also want to hold and exchange when they make transactions”.