Ray DalioBridgewater Associates, the founder of the world’s largest hedge fund, has said it prefers investing in “hard money” such as bitcoin and gold over debt assets, given the rise in global debt.
In the word Speaking at the Financial Week conference in Abu Dhabi, the veteran investor pointed to the “unprecedented levels” of debt seen in all major countries, including the US and China, stressing that current levels are unsustainable.
“It’s unlikely that these countries will have a debt crisis that will cause a big devaluation of the (currency) in the coming years,” Dalio said.
He continued that he “wants to move away from debt assets like bonds and debt and into hard money like gold and bitcoin.” Dalio sees bitcoin and gold as stable hedges against economic uncertainty.
The billionaire investor wasn’t always interested in Bitcoin. Previously, Dalio believed that crypto would not be as successful as he thought it would be. But he has emerged as a major bitcoin advocate in recent years.
in 2022, Dalio said allocating up to 2% of a portfolio in addition to gold to bitcoins makes sense to hedge against inflation.
Dalio’s adoption legitimized bitcoin as a hedge against misguided monetary policy. As people continue to depreciate fiat currencies, Bitcoin’s stable supply makes it a safe haven.
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