Digital Assets: Ray Dalio – Cash is trash; BTC is Untouchable; Libra Maybe; Stocks are Good; Gold is Best

January 24, 2020 | Digital Assets, News
https://dailyalts.com/wp-content/uploads/2020/01/gold-163519_640-dalio-gold.jpg

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.

Related Story:     Hedge Fund Titan Ray Dalio Recommends Investing in Gold

                                 

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2023/12/AMD_headquarters_santa_clara.624da707519a6.jpg
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…

https://dailyalts.com/wp-content/uploads/2023/12/RHCEU-Inline.jpg
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…

https://dailyalts.com/wp-content/uploads/2023/12/Samsung_UK_Samsung_Pay_Lifestyle_0552-revised-Pictogram-23.11.30-1024x744-1.png
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…

https://dailyalts.com/wp-content/uploads/2023/12/Revaia-founders.jpg
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…