Bitcoin News

Billionaire Investor Ray Dalio Slams Bitcoin, Other Cryptos as ‘Not an Effective Storehold of Wealth’

Bitcoin ($BTC) and other cryptocurrencies have recently come under fire from a legendary billionaire hedge fund manager who is also the founder and co-chief investment officer of Bridgewater Associates. This individual stated that Bitcoin and other cryptocurrencies “do not replicate anything” and are “not an effective storehold of wealth.”

During an interview with We Study Billionaires, the famed investor, who is reported to have a net worth of more than $19 billion, stated that despite the fact that blockchain technology is “great,” it’s “extremely crucial to separate it from a digital currency.”

According to his statements, the cryptocurrency industry has been subject to a variety of trends; yet, the digital assets that are associated with it “don’t reproduce anything” and “are not an effective storehold of wealth.”

During the interview, Dalio made the observation that the cryptocurrency sector receives a disproportionate amount of attention considering the relatively tiny market size of the space. At the time of writing, the market capitalization of the space sits at slightly around $1 trillion. He compared it to the market valuation of Microsoft, which is now $1.8 trillion at the time of writing.

Apple, which at the time of this writing is trading at roughly $146 per share, has a market capitalization of $2.3 trillion, making it the most valuable business in the world according to market capitalization. To put this into perspective: The oil behemoth Saudi Aramco, which is based in Saudi Arabia and has a market share of $1.86 trillion, comes in second place.

Throughout the course of the discussion, Dalio also mentioned that we are now living in a climate “in which we’re producing a lot of debt,” which is causing individuals to “search for alternate storeholds of wealth.” On the other hand, he is of the opinion that digital currencies “don’t mimic anything” and are not a hedge against inflation.

In addition, the wealthy investor claimed that cryptocurrencies do not provide any benefits related to privacy because other individuals are able to view transactions that are recorded on the blockchain. Even though he believes that superior cryptocurrencies will be introduced over time, the famed hedge fund manager admitted that he owns a “small bit” of cryptocurrency due to the unpredictability of what the future may hold for it. He cited this as the reason for his ownership.


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