Billionaire hedge fund manager Ray Dalio backs Bitcoin over traditional bonds

Billionaire hedge fund manager Ray Dalio suggested in an interview published Monday that he backed Bitcoin over traditional bonds.

During the interview with CoinDesk’s Chief Content Officer Michael J. Casey, Dalio, the founder of the world’s leading hedge fund Bridgewater Associates, spoke about an inflationary scenario where Bitcoin becomes more attractive to investors if the value of the dollar falls.

“The more we save in [Bitcoin], the more one could say, ‘I would rather have Bitcoin than the bond.’ Personally, I’d rather have Bitcoin than a bond, ”said Dalio in an interview with CoinDesk. “And the more that happens, then it goes in bitcoin and not in credit, then [governments] lose control of it. “

Dalio also announced that he has invested in Bitcoin, the world’s most popular cryptocurrency. “I have some bitcoin,” said Dalio.

Newsweek reached out to Dalio for further comments but did not receive a timely response for publication.

Dalio’s comments during the interview showed a different stance on Bitcoin than in the past. In a series of tweets published in November, Dalio stated that “Bitcoin is not very good as a medium of exchange because it can be used to buy a lot … correlation with the prices of what I have to buy so that owning it does not affect my purchasing power protects. “

According to CoinDesk, the interview with Dalio was recorded on May 6, but published on Monday as part of “Consensus by CoinDesk 2021”.

The interview was published as the price of Bitcoin and several other cryptocurrencies continued to fall.

According to MarketWatch, Bitcoin price fell more than 50% on Sunday from its high in mid-April. At the time of publication, Bitcoin was priced at around $ 37,550, according to CoinDesk.

Bitcoin’s price drop was partly triggered by Tesla CEO Elon Musk’s announcement that the electric car maker would no longer accept Bitcoin for vehicle purchases, citing the cryptocurrency’s “insane” energy consumption.

In addition to Tesla’s announcement, China recently banned financial institutions and other payment companies from performing services related to Bitcoin transactions. Three financial industry associations in China also warned investors against trading Bitcoin and other cryptocurrencies.

A visual representation of the digital cryptocurrency Bitcoin.
Dan Kitwood / Getty

“Cryptocurrency prices have skyrocketed and fallen recently, and speculative trading has rebounded. This seriously affects the security of people’s property and disrupts normal economic and financial order, ”the authorities of the regulators overseen by the People’s Bank of China and China Insurance said, and the Banking Commission said in a statement, according to CNN.

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