Ray Dalio Prefers Bitcoin Over Bonds

Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, said he prefers investing in ‘hard currencies’ such as Bitcoin and gold rather than debt assets, given rising global debt.

Speaking at the Abu Dhabi Finance Week conference, the veteran investor cited “unprecedented levels” of debt seen in all major countries, including the United States and China, stressing that current levels are unsustainable.

“It is impossible for these countries not to experience a debt crisis that will lead to a large decline in their (currency) value in the coming years,” Dalio said.

He went on to say, “I want to move away from debt assets like bonds and debt and have hard money like gold and Bitcoin.” Dalio sees Bitcoin and gold as reliable hedges against economic uncertainty.

The billionaire investor wasn’t always so keen on Bitcoin. Dalio previously believed that cryptocurrencies would not take off as expected. However, he has emerged as a major Bitcoin advocate in recent years.

Dalio said that in 2022, it makes sense to allocate up to 2% of your portfolio to Bitcoin in addition to gold to hedge against inflation.

Dalio’s views further legitimize Bitcoin as a hedge against unsound monetary policies. As countries continue to devalue their fiat currencies, Bitcoin’s fixed supply makes it a safe haven.