Bitcoin, according to the millionaire, is a form of currency as well as a gold substitute.
Ray Dalio, a well-known investor and the founder of Bridgewater Associates, believes that humanity is entering an era in which money will compete, and BTC will be a part of that competition. The principal cryptocurrency is also a gold substitute, according to Dalio.
‘Bitcoin Has Proven Itself,’ says the author.
The 72-year-old American has not always been a strong supporter of the world’s most valuable digital asset. He stated at the start of 2020 that BTC does not serve the goal of money and that “you can’t go next to it due to its volatility.”
The COVID-19 pandemic, as well as the widespread manufacturing of fiat currencies, began to change Dalio’s mind about the asset.
He expressed his love for it in January of this year, calling its longevity “a remarkable accomplishment.” After a few months, the investor acknowledged investing only a small portion of his wealth in BTC.
Dalio reaffirmed his support for bitcoin in a recent interview with Lex Fridman. He added that the evolution of the asset is what has caused him to modify his mind over time:
“It has demonstrated its worth. It hasn’t been hacked; instead, it has operated in such a remarkable manner over the past 11 years to become the most talked-about topic among many people. It has been put to use and now bears the position of having imputed worth.”
The billionaire believes that the massive number of fiat currencies in circulation as a result of some countries’ problematic practices would restructure the global financial system. Bitcoin, as “alternative money,” will be a part of that revolution, he continued.
At the same time, because it functions as a medium of trade, is portable, and is recognized globally, BTC may be considered a gold alternative. The precious metal, on the other hand, remains Dalio’s preferred investment vehicle:
“I still choose gold because of certain characteristics. You can’t, for example, trace it. Gold, of course, has been universally acknowledged as a form of money for thousands of years.”
Dogecoin and NFTs
Dalio also mentioned Dogecoin and NFTs, claiming that the latter might one day become a kind of currency. “You own it, and it’s an investment,” Dalio added, “and you may say, ‘I’d rather own it than bitcoin.” Non-fungible tokens, he believes, are genuine, but they, like all innovations, require time to settle and be accepted by society.
The founder of Bridgewater Associates confessed that he had not yet purchased any NFTs. Simultaneously, he stated that he intends to purchase and even mint some of them to gain a better understanding of how they work.
Following that, Dalio weighed in on Elon Musk’s plan to transport Dogecoin to the Moon and use it as a reserve currency there and on Mars. While acknowledging his admiration for Tesla’s CEO, he made a joke regarding their specific visions:
“All I can say is, ‘That’s cute.'” I admire Elon’s capacity to accomplish other things behind the scenes, so I’d take that as a metaphor and ask him what’s next.”