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Former Bitcoin Critic Billionaire Ray Dalio Goes Bullish on the Cryptocurrency



Former vocal Bitcoin critic Ray Dalio has recently gone bullish on the crypto world and is now backing it against the fiat currencies. The billionaire particularly saw the limited existence of Bitcoin as an effective hedge against the incoming “depreciating value of money”. He predicted that Gold and Bitcoin, both could be effective control measures against the latest onslaught.

During a recent Reddit “Ask me Anything” thread, billionaire hedge fund manager Dalio abandoned his long-standing criticism of the cryptocurrencies. Previously he had been a vocal critic of the digital currency as recently as 3-4 weeks ago when he listed three reasons why he doesn’t expect Bitcoin to become an everyday currency that people can use. Dalio has now stated confidently that Bitcoin has a place in the society along with Gold both as an effective investment or possible hedge against the inflation caused by currency wars by governments around the world.

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He said:

I think that bitcoin (and some other digital currencies) have over the last ten years established themselves as interesting gold-like asset alternatives, with similarities and differences to gold and other limited-supply, mobile (unlike real estate) storeholds of wealth…., So it could serve as a diversifier to gold and other such storehold of wealth assets.”

What Changed his Mind?

Like many other professional investors who previously didn’t like the cryptocurrency but are now open to it, Ray Dalio is worried about the incoming financial crisis due to a “A flood of money and credit” he calls it pouring into the world. This unreal amount of fiat manipulation is not going to slow down according to Dalio and he believes that assets with limited existence can help people. Assets like Bitcoin and Gold for example.

Dalio is now changing his strategy regarding Bitcoin. But, he mostly sees the asset as a good diversifier in face of yet another economic crisis that might hit the world soon enough. He doesn’t call for a Bitcoin-only portfolio and advises people to have a variety of hedging assets against the face of this crisis.

Now the Covid-19 crisis has accelerated the systemic issues with the world’s fiat systems. Top world governments including China and the USA are locked in a trade war and are not willing to give an inch to each other and manipulating their national currencies is their chief tool to achieve that. However, this is creating more and more pressure on these currencies and now the side effects are being seen everywhere with many economists predicting another recession cycle in the near future.

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Image source: Web Summit



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