Ray Dalio, a long-time bitcoin skeptic, again panned the cryptocurrency at Davos.

Ray Dalio, the founder of Bridgewater Associates, the largest hedge fund in the world, dwelt on cash, bitcoin, stocks, and gold at an interview with CNBC in Davos.

Cash would be ultimately junk

On cash, he pulled no punches, saying it was “trash” given the unbridled proclivity of central banks around the world to print as much of it as they thought fit. This trend would ultimately lead to severe depreciation of fiat currencies, leading to economic misery and turmoil.

Dalio on Cryptocurrencies and stablecoins

On bitcoin, Dalio said the cryptocurrency suffered from its immense volatility, and this was a major drawback in its adoption as a means of payment.

He also said that bitcoin failed to achieve the two main purposes of money – a medium of exchange and a store of wealth. “And bitcoin is not effective in either of those cases now… It’s too volatile. Because of the volatility, you can’t go next to it,” Dalio said.

However, Dalio had a favorable view regarding Facebook’s Libra stablecoin.

Since the cryptocurrency would have a collateral backup, it would be much less volatile.

Stocks and Gold check the boxes

Meanwhile, Ray Dalio recommended that investors hold a globally diversified portfolio of stocks that they should consider increasing.

On gold, he pointed to the fact that central banks were some of the largest holders of the precious metal.

“What are they going to hold as reserves? What has been tried and true? Are they going to hold Bitcoin digital cash… They’re going to hold gold. That is a reserve currency.”

The yellow metal was a preferred store of value and had been so for thousands of years, he remarked.

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