During a recent podcast appearance, Bridgewater Associates founder Ray Dalio has clarified that he’s neither a raging bull nor a bear when it comes to Bitcoin.
The American billionaire changed his stance on the world’s largest cryptocurrency last year, revealing that he holds some of it back in May.
The investor agrees with fellow billionaire Bill Miller that one should allocate from 1-2% of his or her net worth into Bitcoin.
Dalio, who remains a huge proponent of diversification, said that competing in the markets is more difficult than competing at the Olympics:
There are more people trying to do this and putting more resources behind it.
Many members of the crypto community saw Dalio’s new book about the changing world order as a 550-page ad for Bitcoin.
Ray Dalio’s new book is basically a 550 page macro economic explanation for why Bitcoin will be a $10 trillion asset.— Ryan Selkis ? ?? (@twobitidiot) December 28, 2021
The only reason I can think he’s still long gold, meh on crypto is that he doesn’t want to telegraph the fact that Bitcoin is the asset in his bolt bag.
Both zealots and “thoughtful” people are part of the Bitcoin community, Dalio says.
Key risks faced by Bitcoin
He reiterated that he’s impressed by the fact that Bitcoin has managed to stand the test of time without breaking down.
However, he warned about some risks faced by Bitcoin. First of all, he believes that a new alternative might emerge since everything eventually gets old, which is just the nature of evolution.
He predicts that more money could flow into non-fungible tokens and other coins for diversification purposes. As reported by U.Today, Dalio is yet to dabble in NFTs, but the latest crypto frenzy has made him curious.
The head of the world’s largest hedge fund has once again warned that governments could outlaw Bitcoin just like they outlawed gold and silver back in the day:
When you have an alternative currency, that’s a threat to every government. Every government wants a monopoly in their own currency.
Finally, he also mentioned the proliferation of ransomware and malware as yet another problem that is plaguing Bitcoin.