The founder and chief investment officer of Bridgewater Associates, the world’s largest hedge fund company, clarified his view on bitcoin and cryptocurrency. Ray Dalio also reveals that he and his colleagues at Bridgewater “are focusing intensively on alternative storage of heritage assets”.
Bridgewater founder Ray Dalio admires Bitcoin ‘a lot’
Ray Dalio, founder and chief investment officer of Bridgewater, clarified his view on bitcoin and revealed what his company has in store for cryptocurrency. With about $ 140 billion in assets under management, its hedge fund is the largest in the world. AICIO Magazine and Wired Magazine called Dalio “Steve Jobs of Investments” and TIME Magazine named him one of the 100 Most Influential People.
In a research note published on the Bridgewater Associates website on Thursday, Dalio wrote: “I am writing this to clarify what I think of bitcoin. Please pay attention to what I am saying here and not what the media is saying that I said, because that is reliable. “
He started by admitting that he is not a bitcoin or cryptocurrency expert. “Still, people demand my unskilled bitcoin assessment and clarification in my own words is better than media distortions, so here goes, presented with the warning not to trust him,” said Dalio, elaborating:
I believe that bitcoin is quite an invention. To have invented a new type of money through a system programmed into a computer that has worked for about 10 years and is rapidly gaining popularity as a type of money and a deposit of wealth is an incredible achievement.
Emphasizing the current need for “alternative gold-like assets”, Dalio stated that “Since there are not many of these deposits of gold-like wealth assets that can be kept private and because the sizes of their markets are relatively small, there are possibility that bitcoin and its competitors can fill this growing need. ”
The Bridgewater founder noted: “It seems to me that bitcoin has managed to cross the boundaries of a highly speculative idea that might not exist soon to probably exist and is likely to have some value in the future.”
He further said: “I really admire how bitcoin has withstood the 10-year test, not only in that respect, but also in how its technology has worked so well and hasn’t been hacked.” However, the Bridgewater executive warned that those “holders of digital / cyber assets at a time when the cyber attack is much more powerful than the cyber defense, cyber risk is a risk that I cannot ignore”.
In conclusion, Dalio said that bitcoin seems to him “a long-term option in a highly unknown future in which I could invest an amount of money that I wouldn’t mind losing about 80%”. He concluded: “This is what bitcoin looks like for this non-specialist. I look forward to being corrected and learning more ”, elaborating:
Believe me when I say that my colleagues at Bridgewater are focusing intensively on alternative reserves of equity assets.
Dalio also revealed: “We hope that Bridgewater will soon offer an alternative cash fund and an equity fund to better deal with the devaluation of money and credit that we consider to be a great risk and opportunity, and bitcoin will not escape our scrutiny. ”The head of Bridgewater clarified that when he uses the word” bitcoin “, he means” bitcoin and its analogous competitors “.
Dalio has recently been talking more about bitcoin. In November, he admitted he may be wrong about the cryptocurrency, but he still had doubts. In December, he said bitcoin could be an alternative deposit of wealth to gold.
What do you think of Ray Dalio’s view of bitcoin? Let us know in the comments section below.
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