Bitcoin Magazine

Legendary Investor Ray Dalio Touts Bitcoin — With Gold — To Hedge Against Incoming Debt Crisis

Top investor Ray Dalio has again sung Bitcoin’s praises. But only a little bit. 

The billionaire hedge fund boss said in his latest essay that he expected  “non-government-produced monies like gold and bitcoin to do relatively well” as government debt grows. 

Dalio, who founded one of the world’s largest hedge funds, Bridgewater Associates, has long warned investors about the size of America’s debt. U.S. national debt passed the $40 trillion mark this week. 

“As general advice, I suggest diversifying well in asset classes and countries that have strong income statements and balance sheets and are not having great internal political and external geopolitical conflicts, underweighting debt assets like bonds, and overweighting gold and a bit of Bitcoin,” Dalio wrote. 

He added that major economies like the U.K., U.S., Europe, and Japan all have similar debt and deficit problems and therefore assets like bitcoin — which are not issued by governments — could end up benefiting. 

Dalio has gone from saying he wouldn’t invest in Bitcoin over the years to finally admitting it was in his portfolio. 

Last year, Dalio said that bitcoin only made up 1% of his investments. He reiterated that point this year, and warned that although no one can print more bitcoin, it can be hurt by quantum computing advances. 

Back in 2020, the billionaire investor said that the cryptocurrency was too volatile to use as money but that it was worth holding a little bit. Gold, on the other hand, should be held by all investors, he added. 

Dalio’s latest essay explains that when governments over-borrow and central banks respond by printing money to cover the gap between debt supply and demand, the value of the currency gets debased.

Bitcoiners have long argued that the oldest cryptocurrency can work as a hedge against government printing, just like gold. 

And Bitcoin has in the past benefited from governments expanding their money supplies. 

This post Legendary Investor Ray Dalio Touts Bitcoin — With Gold — To Hedge Against Incoming Debt Crisis first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.

Bitcoin Magazine

Legendary Investor Ray Dalio Still Holds Bitcoin — But Only 1% of His Portfolio 

Legendary investor Ray Dalio still only holds 1% of his portfolio in Bitcoin — and prefers gold instead. 

Speaking on a Thursday episode of the Diary of a CEO podcast, the Bridgewater Associates founder explained that while there are different types of money, and Bitcoin was one of them, gold was a better investment.  

Dalio has gone from saying he wouldn’t invest in Bitcoin over the years to finally admitting it was in his portfolio. 

“[Bitcoin] is a type of money that can’t be printed, but there are technologies that can hurt it — in other words, if there’s quantum computing,” he said. 

“And it can be monitored by governments and so on, and it could be taxed. And digital currencies are somewhat similar.”

Dalio added that Bitcoin only makes up 1% of his portfolio. “I prefer that — I’m pointing to the gold bars here — rather than the Bitcoin,” he added on the show. 

Last year, Dalio also admitted that Bitcoin only made up 1% of his investments. 

This isn’t the first time Dalio has criticized Bitcoin and praised gold: Back in 2020, the billionaire investor said that the cryptocurrency was too volatile to use as money but said everyone should have some gold in their portfolio. 

Dalio continued that governments could crack down on Bitcoin. “When the governments say I don’t want it, they have the power, therefore, to do whatever they want with it, and central banks will not own any significant amount of that because of the reason I said: they want their transactions to be private and in their control.”

While Dalio still takes a cautious approach to Bitcoin buying, over the years, the asset has become more widely accepted among traditional investors and even Wall Street heavyweights — including BlackRock, the world’s largest asset manager.  

BlackRock CEO Larry Fink in recent years has called Bitcoin an “international asset” and a way of “digitizing gold.” 

This post Legendary Investor Ray Dalio Still Holds Bitcoin — But Only 1% of His Portfolio  first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.