- Ray Dalio said he’d rather own bitcoin than bonds in a CoinDesk interviewed aired Monday.
- The Bridgewater founder also said he owns “some bitcoin,” the first time he’s ever disclosed a position in the cryptocurrency.
- Dalio has been bearish on bonds for a while, saying they pay less than inflation.
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Billionaire investor Ray Dalio said he would rather own bitcoin than bonds in an interview aired on Monday at the Consensus by CoinDesk 2021 convention.
The Bridgewater Associates founder reiterated his view that the US dollar is on the verge of a devaluation, and he suggested that bitcoin could be an attractive savings vehicle in an inflationary scenario.
“The more we create savings in it, the more you might say, ‘I’d rather have bitcoin than the bond,'” Dalio said. “Personally, I’d rather have bitcoin than a bond.”
The billionaire investor has been bearish on bonds for quite some time, saying that the financial instruments pay less than inflation.
“I have some bitcoin,” Dalio also said during the interview, which was recorded on May 6. The investor didn’t say how much he owned.
Bitcoin rebounded as much as 15% on Monday to trade around $38,683 per coin after a vicious sell-off over the weekend.
He added that bitcoin’s greatest risk is its success. If it becomes a larger asset class and starts to pose a real threat to others like bonds, that could prompt a regulatory crackdown that could hinder the cryptocurrency. He said right now, bitcoin isn’t a true threat because it’s still small relative to other assets. The total value of bitcoin is slightly over $1 trillion, while the value of US bonds is about $23 trillion, according to Dalio.
In March, Dalio said that the government could ban bitcoin altogether if it becomes too successful.
The investor was skeptical about the cryptocurrency as recently as November, but he began to warm-up to the idea of bitcoin at the start of 2021. In an investor letter, he said that bitcoin is “one hell of an invention,” and said there exists a possibility that bitcoin and other cryptos could become an alternative gold-like store of value.
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