Cryptocurrencies are too vulnerable and likely to be banned by several governments.
Billionaire Ray Dalio, the founder of Bridgewater Associates, stated his views in an interview with David Rubenstein.
Raymond Thomas Dalio is an American billionaire investor and hedge fund manager who has served as co-chief investment officer of the world’s largest hedge fund, Bridgewater Associates, since 1985. He founded Bridgewater in 1975 in New York.
According to Dalio, given the size of the cryptocurrency market, it is “getting too much attention.” He expressed that digital assets make up “a tiny percentage” of his investment portfolio.
In December 2021, the billionaire announced that he had invested in Ethereum to diversify his portfolio but he did not disclose the exact amount of the investment. However, he said that the investment is “not very much.”
In a conversation with Rubenstein, he noted that the use of cryptocurrencies is fraught with risks. The billionaire also said that digital assets “will be outlawed by possibly a number of governments.”
According to the head of Bridgewater Associates, people are increasingly wondering what to use as a medium of exchange and store of value, so according to him, fiat will experience increasing competition from digital currencies.
He also advised creating an investment portfolio that is diversified across asset classes and markets. The billionaire also noted that “cash is garbage.”
Dalio has warned authorities about a potential ban on cryptocurrencies saying that regulators must not impose strict regulations on crypto and should provide this sector a breathing space. In September, he said that regulators would “kill” bitcoin if it was a massive success.