Ray Dalio (billionaire founder of Bridgewater Associates), has included cryptocurrency in his investment strategy. He said that cash is the worst form of investment, as it is easily eroded by inflation.
Ray Dalio’s Investment Advice: Cash Is Depreciating, Diversify Portfolio Well
Ray Dalio, founder of Bridgewater Associates, shared his investment strategy last Wednesday. He is currently the chairman of Bridgewater Associates and co-chief investor officer. His clients include governments, foundations and endowments.
He stated that cryptocurrency is “an alternative money in an environment in which the value of cash money has depreciated in real terms” in a Yahoo Finance interview.
It’s amazing that the programming has held up for so many 10, years. It has not been hacked or so forth. It has a high adoption rate.
Dalio answered when asked about his concern about inflation: “I’m very concerned about it.” It is because of the large amount of money and credit needed to be produced and budgeted.
The billionaire said that cash is trash and added: “Cash, which most people think is the best investment, but that it is not the safest, is, I believe, the worst investment because it loses purchasing power.” “So pay attention to them, because that’ll be my worst investment,” the Bridgewater Associates boss said.
Investors should remember that you shouldn’t evaluate your returns or assets in nominal terms. This is because it will only be a matter of how many dollars they have. It should be viewed in inflation-adjusted terms.
Dalio then spoke about diversification. Dalio said that he was very passionate about diversification, and added that it was important to diversify one’s portfolio well because we can see the surprises in the balance.
He explained: “We also know these asset classes significantly outperform and can significantly outperform money and that they move among each other in a manner that has to do avec correlations because bonds will do better when things are down — when economy goes down — and stocks will do better, etc.
According to the billionaire, cryptocurrency like bitcoin can diversify portfolios. “I see crypto as a small part of that. He stressed that cash will be a problem asset and suggested holding diversified assets.
It is important to look at it in terms of real numbers, and not just nominal ones. To truly diversify your portfolio, diversification must include international diversification from other countries.
He previously stated that he owned bitcoin (BTC) in relation to cryptocurrency. He reportedly stated that he also owned ether (ETH) this week. He said, “I don’t have a lot of it,” without disclosing which cryptos or how many he has.
Marketwatch interviewed Bridgewater Associates founder last week.
Although I am not an expert in bitcoin, I believe it can be a part of a portfolio.
He stated that Bitcoin is similar to gold, even though fiat money is a well-established blue-chip option.
Dalio cautioned that Bitcoin has other problems. It will likely be outlawed in certain places if it poses a threat to the governments. It might not be banned everywhere. It is unlikely that major institutions or central banks will have significant amounts in it.
What do you think of Ray Dalio’s investment advice and comments on bitcoin? Comment below to let us know your thoughts.
Kevin, a student of Austrian Economics and evangelist since then. His interests include Bitcoin security, open source systems, network effects, and the intersection of cryptography and economics.
Image Credits: Shutterstock. Pixabay. Wiki Commons.
Disclaimer: This article is intended for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. The author and the company are not responsible for any loss or damage caused by or alleged to have been caused by the use or reliance of any content, goods, or services in this article.