•Ray Dalio, billionaire and founder of Bridgewater Associates, is not a fan of bitcoin and doesn’t fully understand it.
•He believes gold is more reliable than bitcoin due to its established stability and history.
•Dalio has seen people get rich from bitcoin, but also go broke with it due to its volatility.
Ray Dalio’s Opinion on Bitcoin
Ray Dalio – a billionaire and the founder of Bridgewater Associates – has never been a big fan of bitcoin. In his latest interview, he reiterated this lack of enthusiasm for the cryptocurrency industry and its commander-in-chief BTC. He specifically touted gold as more reliable than bitcoin due to its established stability and history, claiming that he didn’t understand “why people are more inclined to go to bitcoin than gold.” Despite holding some BTC himself at press time, he admits that he doesn’t feel passionate about it like many others do, citing the problems with cryptocurrency such as being easy for others to track transactions or move in an inconsistent way related to other environments.
Ray Dalio’s Touting of Gold
Ray Dalio has often touted gold’s strength and stability compared to fiat money or cryptocurrencies such as BTC; however, he hasn’t fully transitioned into trusting crypto yet due to its extreme volatility. He claims that unlike gold which moves in a reliable way related almost anything, crypto „moves up and down because of this move and that move.“ He went on further saying that he had seen both people getting very rich off Bitcoin but also going broke because of it too.
Bitcoin’s History
Bitcoin has seen solid bull runs in the past (and is currently enduring one right now at the time of writing). However, given these extreme price fluctuation over the past 18 months or so – where prices have gone very high then low again – Ray Dalio feels this makes Bitcoin too speculative to be taken seriously as an asset class.
The Size Comparison
Dalio mentioned that in comparison to other assets such as Microsoft which is one stock among many stocks; cryptos are still small asset classes with their size being around 30 percent of Microsoft’s size even though they are talked about much more frequently now then ever before.
Conclusion
In conclusion, while acknowledging bitcoins potential for growth factors; Ray Dalio still isn’t feeling any real passion when it comes investing into crypto assets like Bitcoin due it extreme volatility making it difficult for him trust them as a viable option for long term investments.