Top Billionaire Urge Investors to Stay Away From Cash Amid High Inflation


Ray Dalio

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The constant dip in the crypto market might have concerned the investors and raised questions about crypto’s reliability, but the billionaire investor Ray Dalio thinks that Bitcoin and Crypto are great. Talking to CNBC at The World Economic Forum (WEF) meeting in Davos, Dalio said that crypto can be called digital gold. In collapsing economies, it might turn out to be a medium of exchange between the countries.

Many of Ray Dalio’s investment principles will be familiar to even the most ardent bitcoin supporters. Given Dalio’s long-held belief that bitcoin is prone to bubbles and could be a target for government penalties, it’s an important point to make.

Bitcoin is susceptible to market bubbles.

At Davos for WEF, leaders of various economic branches and financial giants have gathered for the event which runs from 22nd May to 26th May. Dalio was the one who drew the most attention when he demonstrated his newfound understanding of cryptocurrency.

He had opposing views on cryptocurrency in 2020, claiming that it was not genuine money. Whereas Dalio previously warned that Crypto might be outlawed by several nations in February, this time he merely stated that crypto and blockchains are fantastic and are part of his portfolio.

Bitcoin’s ‘Little Spot Relative to Gold,’ according to Dalio.

At various conversations with CNBC at the biggest economic stage, Dalio pointed out that the cash is trash and the world economy is under siege. Dalio gave various reasons including high debt, political reasons, and supply/demand imbalances, which have caused the economy to sink.

He said that cash is losing its buying power and all the correlated currencies like Euro or Yen are depreciating their own value. He said that stocks were even trashier and at one such stage, Bitcoins or crypto could play a role. He said that crypto is like “Digital Gold” and in future it could be the medium of exchange among collapsing economies.

“I mean all currencies in regard to the euro, in relation to the yen when I say cash is trash,” Dalio added. “All of those currencies will devalue in relation to commodities and services, just like the ones in the 1930s.”

The Era of New Money 

He was clear in his thought when he said that we are currently in a period where people are experimenting with new money forms. All currencies, based on his experience, will depreciate in proportion to goods and services. “That means fiat currencies,” he explained, “and when we look at currencies, you hold them in the form of a loan.”

While talking about his own portfolio, Dalio also admitted that Bitcoin had made stunning progress in the last 11 years and it’s also a tiny part of his portfolio. According to reports, Dalio started to invest in Bitcoin in March 2021, right after a pandemic hit the world and it takes around 2% of his portfolio.

Amidst all the chaos most financial consultants recommend retaining a long-term stake in the market, and Dalio’s recent comments on crypto and Bitcoin may reassure investors who are concerned about the market’s decline.