Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, said he prefers investing in “hard money” such as bitcoin and gold to debt assets, given rising global debt.
In <a target="_blank" href="https://www.scmp.com/business/banking-finance/article/3290169/bridgwaters-ray-dalio-invest-gold-and-bitcoin-rather-debt-assets”>a speech At the Abu Dhabi Finance Week conference, the veteran investor referred to the “unprecedented levels” of debt seen in all major countries, including the United States and China, and stressed that current levels are unsustainable.
“It is impossible that these countries cannot have a debt crisis in the next few years that will lead to a huge drop in the value (of money),” Dalio said.
He went on to say that he wants to “move away from debt assets like bonds and debt, and have some hard money like gold and bitcoin.” Dalio sees bitcoin and gold as stable hedges against economic uncertainty.
The billionaire investor wasn't always so interested in bitcoin. Previously, Dalio believed that cryptocurrencies would not be as successful as expected. But in recent years he has become a major proponent of bitcoin.
In 2022, dalio said Allocating up to 2% of a portfolio to bitcoin, in addition to gold, is reasonable to protect against inflation.
Dalio's opinion further legitimizes bitcoin as a protection against erroneous monetary policies. As nations continue to debase fiat currencies, bitcoin's fixed supply makes it a safe haven.
