- For next-generation investors, Bitcoin is a replacement for gold, says billionaire investor Ray Dalio.
- He himself believes that bitcoin has advantages as an investment asset – it diversifies the portfolio and has an estimated value.
- The founder of the hedge fund Bridgewater Associates said this in an interview with Market Watch.
For next-generation investors, Bitcoin is a replacement for gold, says billionaire investor Ray Dalio. He himself believes that bitcoin has advantages as an investment asset – it diversifies the portfolio and has an estimated value.
Ray Dalio Bitcoin Saga
The founder of the hedge fund Bridgewater Associates said this in an interview with Market Watch. Dalio calls an achievement the path taken by bitcoin from the moment of writing its program code to its circulation, albeit not at the state level, in many countries of the world.
The expert reminds that in its history this blockchain has never been hacked. “I believe in blockchain technology – it will revolutionize because it has earned trust,” says the investor.
Ray Dalio recommends not to keep money in cash, because in this case it will be “eaten by inflation”, but to create a diversified “all-weather” portfolio. At the same time, the head of Bridgewater Associates noted that the first cryptocurrency has “advantages as a small part of the portfolio.”
“I don’t have much of it (bitcoin – Ed.) – I believe that a portfolio should start with assets that protect it and ensure its diversification. This is almost an alternative to gold for the younger generation,” Dalio explains his position.
He added that bitcoin has no intrinsic value. But at the same time, this asset has a “notional estimated value”, therefore, it has some advantages.
Since the beginning of the year, the Bitcoin rate has grown by more than 60%. According to the WhiteBIT cryptocurrency exchange, as of December 17, the cost of one token is approximately $ 47.1 thousand.
At the same time, according to Dalio, the first cryptocurrency also faces a number of challenges. The expert again admitted that cryptocurrency will be banned in countries that consider it a threat, but this will not become a widespread trend.
Who is Ray Dalio?
Raymond Thomas Dalio (born August 8, 1949) is an American billionaire investor and hedge fund manager, who has served as co-chief investment officer of the world’s largest hedge fund, Bridgewater Associates, since 1985. He founded Bridgewater in 1975 in New York. Within ten years, it was infused with a $5 million investment from the World Bank’s retirement fund. Dalio is regarded as one of the greatest innovators in the finance world, having popularized many commonly used practices, such as risk parity, currency overlay, portable alpha and global inflation-indexed bond management.
Dalio was born in New York City, and attended C.W. Post College of Long Island University before receiving an MBA from Harvard Business School in 1973. Two years later, in his apartment, Dalio launched Bridgewater.
In 2013, it was listed as the largest hedge fund in the world. In 2020 Bloomberg ranked him the world’s 79th-wealthiest person. Dalio is the author of the 2017 book Principles: Life & Work, about corporate management and investment philosophy. It was featured on The New York Times best seller list, where it was called a “gospel of radical transparency.
In his high school years, Dalio was an average student. He found school repetitive and monotonous, and saw no practical applications for the skills he was learning. Because of this, he had trouble finding a college to enroll at. He finally applied and got into C.W Post College, a campus of Long Island University. He continued to buy and sell stocks in college, but became attracted to something new: commodity futures.
Commodity futures had low borrowing requirements at the time, and Dalio knew he could profit more handsomely than with simple stocks. At the same time, he was beginning to enjoy school. With more freedom given to him, he took up transcendental meditation, which he still practices to this day. With this newfound strategy to manage stress and focus, along with his blossoming appetite for learning, Dalio excelled academically. At the end of his time at C.W Post College, he was admitted to Harvard Business School.