Billionaire Investor Ray Dalio Turning Bullish On Bitcoin (BTC)
Billionaire investor Ray Dalio appears to be changing his opinion and turning bullish on Bitcoin, saying it had now established itself and was an interesting gold-like alternative asset.
The Bridgewater Associates founder wrote his latest sentiments in a Reddit AMA yesterday. The famed hedge fund manager noted Bitcoin’s ‘limited-supply, mobile (unlike real estate) storeholds of wealth’ were an attraction and made it a complementary investment alongside gold.
‘I think that bitcoin (and some other digital currencies) have over the last ten years established themselves as interesting gold-like asset alternatives with similarities and differences to gold and other limited-supply, mobile (unlike real estate) storeholds of wealth,’ wrote Dalio.
‘So it could serve as a diversifier to gold and other such storehold of wealth assets. … The main thing is to have some of these type of assets … including stocks, in one’s portfolio and to diversify among them,’ said the Bridgewater founder.
‘We’re in a flood of money … that is threatening to the value of our money.’
Dalio was taking questions on all aspects of the macro economy and said all assets were unlikely to fall due to the ‘flood of money and credit’ that was ultimately ‘depreciating [the] value of money’.
‘We are in a flood of money and credit that is lifting most asset prices and distributing wealth in a way that the system that we’ve come to believe is normal is unable to, and that is threatening to the value of our money and credit,’ said Dalio. ‘Most likely that flood will not recede, so those assets will not decline when measured in the depreciating value of money.’
Ray Dalio’s Bitcoin About Turn
Ray Dalio isn’t the first to change his opinion on Bitcoin. In fact most people are sceptical of Bitcoin at first until they dig deeper and discover what it actually is.
The billionaire investor has regularly pointed out that Bitcoin is ineffective as either a medium of exchange or a store of value, and has always been bearish about it.
Only last month, the Bridewater Associates founder said ‘governments will kill Bitcoin and outlaw it if it ever became material’.
Then in a tweetstorm last month, Dalio pointed out his beliefs on Bitcoin’s weaknesses, but admitted he ‘might be missing something on Bitcoin’ and he ‘would love to be corrected’ on his bearish stance.
It was the first time Ray Dalio appeared to be turning a corner, and now just 3 weeks later, he’s calling Bitcoin a gold-like asset that could compliment gold in a diversified portfolio.
Dalio has always said he has a strong preference for holding things he believes ‘central banks are going to want to hold and exchange value in,’ which he reiterated again yesterday.
And although the Bridgewater hedge fund manager doesn’t go whole hog and join the ‘Bitcoiner ranks’, it’s quite an about turn for the famed billionaire investor.
Author: Tommy Limpitlaw
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.