Hedge Fund Veteran Ray Dalio Believes Bitcoin is Not a Good Store of Wealth
Hedge fund veteran Ray Dalio believes that cryptocurrencies like Bitcoin are not effective stores of wealth.
In a recent interview with “We Study Billionaires”, Ray Dalio, a well-known crypto critic and founder of asset management firm Bridgewater Associates, expressed his skepticism about Bitcoin and other cryptocurrencies as a store of wealth.
According to Dalio, given its relatively small market cap, the digital asset space gets too much attention. In his opinion, crypto-assets do not work well as mediums of exchange or stores of value.
Blockchain technology vs. digital currency
While Dalio believes blockchain technology is excellent, he argues it is essential to distinguish it from digital currency.
Alternative stores of wealth
The hedge fund veteran believes the current environment is creating a lot of debt, and money and financial assets such as debt assets will not be good alternatives for people to hold wealth.
However, he notes that digital currencies are not an effective store of wealth either.
Dalio also argues that crypto does not offer privacy benefits because everyone tracks what users do on it.
Dalio’s crypto holdings
Although Dalio does not believe in cryptocurrencies as a store of value, he still owns “a tiny bit” of crypto for the experience and the “who knows” element. He also predicts there will be “better digital currencies” in the future.