Ray Dalio, founding father of the world’s largest hedge fund Bridgewater Associates, stated he prefers investing in “onerous cash” like bitcoin and gold over debt property, given rising international indebtedness.
In a speech on the Abu Dhabi Finance Week convention, the veteran investor referred to “unprecedented ranges” of debt seen in all main international locations, together with the USA and China, stressing that present ranges are unsustainable.
“It’s unattainable for these international locations to have the ability to not have a debt disaster within the years forward that may result in an awesome decline of [money] worth,” Dalio stated.
He continued that he needs to “steer away from debt property like bonds and debt, and have some onerous cash like gold and bitcoin.” Dalio sees bitcoin and gold as steady hedges towards financial uncertainty.
The billionaire investor was not at all times so eager on bitcoin. Beforehand, Dalio believed crypto wouldn’t succeed as hoped. However he has emerged as a serious bitcoin advocate in recent times.
In 2022, Dalio stated allocating as much as 2% of a portfolio to bitcoin, along with gold, is affordable to hedge towards inflation.
Dalio’s take additional legitimizes bitcoin as a hedge towards unsound financial insurance policies. As nations proceed debasing fiat currencies, bitcoin’s mounted provide makes it a secure haven.
