During a recent interview with CNBC, Ray Dalio, the founder of hedge fund giant Bridgewater Associates, stressed that Bitcoin, the flagship cryptocurrency, has no relation to anything:
I think it has no relation to anything…It's a tiny thing that gets disproportionate attention. The value of Bitcoin is less than a third of the value of Microsoft stock…Biotech and other industries are more interesting than Bitcoin.
Dalio further added that Bitcoin is not going to be an effective medium of exchange or an effective store of wealth.
At the same time, the American investor described Bitcoin's accomplishments over the past 14 years as "amazing."
After criticizing stablecoins, Dalio floated the idea of introducing a digital coin that is tied to the rate of inflation. It would help individuals to secure their buying power, according to Dalio. "I think you are probably going to see the development of coins that probably will end up being attractive as viable coins. I don't think Bitcoin is it."
Cash is no longer trash
Speaking of the broader economy, Dalio argues that cash is now relatively attractive after repeatedly calling it "trash" over the past two years.
He further explained that the greenback is now relatively attractive in relation to stocks and bonds.
"We are now in a classic spot where we have a relatively high interest rate…You've got a cash rate that is relatively high," he said.
The billionaire revealed that he bought Bitcoin for the first time in May 2021 after previously making critical comments about the world's largest cryptocurrency.
As reported by U.Today, Dalio said that Bitcoin constituted only a tiny portion of his portfolio last May. Prior to that, the hedge fund manager mentioned that it was prudent to allocate up to 2% of one's portfolio to the world's largest cryptocurrency.
Dalio also commented that he would choose gold over Bitcoin since the former has already proven itself as a viable store of value with its proven track record.
The billionaire also stated that he is neither bearish nor bullish on the world's largest cryptocurrency.