•Ray Dalio – founder of Bridgewater Associates – is not a fan of bitcoin and does not understand it.
•Dalio prefers gold to BTC, touting its stability and history when compared to the volatility of BTC.
•He acknowledges that BTC has had successful bull runs in the past, but feels it’s too risky to trust.
Ray Dalio Not a Fan of Bitcoin
Ray Dalio, billionaire founder of Bridgewater Associates, has never been a big fan of bitcoin. In an interview he recently gave, he voiced his preference for gold over bitcoin and said that he doesn’t understand why people are more inclined towards crypto than gold.
Why Gold Over Bitcoin?
Dalio touted the stability and long-standing history of gold as reasons why it should be preferred over bitcoin. He noted that cryptocurrency is easy to track in terms of transactions but its movements don’t correlate with any environments and it’s still a very small asset class when compared to other stocks like Microsoft.
Risky Nature Of Bitcoin
When discussing bitcoin, Dalio mentioned how there have been cases where people have made fortunes off cryptocurrency as well as those who have lost money on it due to its volatile nature. This lack of concrete reliability has made him hesitant about trusting bitcoin with his portfolio or life savings.
What Should We Do?
Given this information, investors should proceed with caution when investing in cryptocurrencies such as bitcoin as they can be unpredictable due to their speculative nature. It may be wise for them to diversify their portfolios by also investing in assets such as gold which have stood the test of time and come out unscathed from economic downturns like the one we are currently experiencing due to the pandemic.
Conclusion
In conclusion, Ray Dalio does not seem convinced by the potential benefits offered by cryptocurrencies like bitcoin despite its success in previous bull runs. Instead, he recommends putting your faith into more reliable assets such as gold that have proven themselves throughout centuries despite economic turmoil or market crashes.