‘Cash is junk’: Ray Dalio warns investors not to rely too much on cash, admits he owns some bitcoin despite the dangers
The world’s largest hedge fund manager, Ray Dalio, believes that regulators will eventually take control of bitcoin if the cryptocurrency is widely successful.
“If he’s successful, the government won’t want him. In the end, if he’s very successful, they’re going to kill him, and they have a way to kill him,”Dalio told CNBC.
“Cash is garbage”
Likewise, Dalio warned investors not to rely too heavily on cash, acknowledging that he owns some bitcoin despite the dangers. But he assured that his investment in cryptocurrencies is only a fraction of his investment in gold.
“That doesn’t mean it has no value. Of course, it has no intrinsic value,”Dalio said.
On cash, he said: “Cash is rubbish, so don’t store cash.”
Dalio: Bitcoin’s value lies in perception and diversification.
The founder of Bridgewater Associates, with a fortune of $15.6 billion, believes that Bitcoin’s value may lie in perception and diversification.
“You let El Salvador take it on, you let India and China get rid of it. You let the U.S. talk about how to regulate it, and it’s still in control,”Dalio told CNBC.
In June, El Salvador became the first country to adopt Bitcoin as legal tender. Meanwhile, India intends to ban all forms of private cryptocurrencies. Recently, the media suggested that the government could soften its hardline stance and list cryptocurrencies as commodities. For its part, China has begun cracking down on the cryptocurrency market, ordering miners to shut down their operations.
Dalio, 72, has become one of the cryptocurrency’s most high-profile investors as he went from a low in March 2020 to an all-time high in April of this year, when he hit an all-time high of nearly $64,000. Bitcoin is trading around $45,000 today.