Billionaire Ray Dalio Says He’s Investing in Ethereum, Calls Crypto Asset ‘Alternative Money’ in Era of Cash Debasement

Veteran hedge fund supervisor and former crypto skeptic Ray Dalio says that he’s investing in Bitcoin and high good contract platform Ethereum (ETH) as inflation continues to debase money.

In a brand new interview with Yahoo Finance, the billionaire investor says that he owns BTC and ETH as a substitute for money throughout a time the place cash is shortly shedding its worth.

When requested about his cryptocurrency portfolio, Dalio says,

“Well, I’m not going to provide the exact quantity of Bitcoin – however I do personal some Ethereum as effectively. But the reply to your query is that I don’t personal rather a lot of it. I view it as various cash in an surroundings the place the worth of money cash is depreciating in actual phrases.

And I believe it’s very spectacular that for [the] final 10, 11 years, that programming has nonetheless held up, it hasn’t been hacked and so forth, and it has an adoption price.”

Dalio says that whereas many buyers imagine that money is sensible as half of a portfolio, inflation could eat away at fiat forex greater than most anticipate.

“I want to say that money – I’ve been quoted [saying] ‘cash is trash’ – which most buyers assume is the most secure funding is, I believe, the worst funding. And that it’s essential as a result of it loses shopping for energy.

The one factor I might say to buyers is don’t decide something in your returns or your property in nominal phrases, in phrases of what number of {dollars} you have got. View it in phrases of inflation-adjusted {dollars}.

And like so money this yr, you’ll lose 4% or 5% to inflation. So take note of [that], as a result of I imagine that that’ll be the worst funding.”

Dalio then says that cryptos have a task in diversifying investor portfolios, which may function a hedge in opposition to inflation.

“The essential factor is to diversify one’s portfolio effectively. Because we all know from the surprises in the steadiness – we additionally know that these asset courses on common considerably outperform and can considerably outperform money.

And that they transfer between one another in a means that has to do with correlations, as a result of when issues go down when the financial system goes down, then bonds will do higher than shares, and so forth and so forth. So diversification of property – I view crypto as a small piece of that.”

ETH is exchanging fingers at $3,851 as of writing, a 5.7% lower from its seven-day excessive of $4,084.

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