Ray Dalio is calling bitcoin “one hell of an invention.”
Ray Dalio Wants to Offer Crypto to New Funds
Traders from all over the world have fallen for the world’s number one digital currency by market cap. While the asset has recently lost about $10,000 off its price, the currency ultimately hit the $40,000 mark in early January, striking a new all-time high for itself, and as a result, Wall Street traders, institutions and some of the biggest financial players around are looking at bitcoin through a much more respective lens.
Dalio has often been there to shed some light on what’s positive about bitcoin. Right now, he’s looking into the possibilities of adding cryptocurrencies as investments for new funds, many of whom are looking at standard currencies and raising an eyebrow or two regarding recent inflation rates.
In a recent interview, Dalio said of bitcoin:
To have invented a new type of money via a system that is programmed into a computer and that has worked for around ten years and is rapidly gaining popularity as both a type of money and a store of wealth is an amazing accomplishment. There aren’t many alternative gold-like assets at this time of rising need for them.
However, he was also quick to address certain risks in the interview, making his statements honest and clear and not a full-blown endorsement. He commented that some of the things that make bitcoin vulnerable include cyberthieves, who can hack exchanges and money systems to get their fingers on digital funds that aren’t theirs. In addition, he says many governments worldwide are looking to control the global flow of money, and thus they could potentially step in and place limits on bitcoin activity.
In the past, Dalio has compared bitcoin favorably to gold, commenting on Twitter:
I think that bitcoin and some other digital currencies have, over the last ten years, established themselves as interesting gold-like asset alternatives, with similarities and differences to gold and other limited supply, mobile (unlike real estate) store holds of wealth… As [for] bitcoin relative to gold, I have a strong preference for holding those things which central banks are going to want to hold and exchange value in when they are trying to transact.
Changing His Thoughts in Little Time
These comments came only a month after Dalio initially posted critical statements of the digital currency, suggesting that when it comes to bitcoin, it’s virtually possible to turn anyone from a hater into a fan. Just last November, he mentioned:
I can’t imagine central banks, big institutional investors, businesses or multinational companies using it. If I’m wrong about these things, I would love to be corrected.
In December, Dalio’s son tragically passed away after a vehicle crashed into the Verizon store that he was shopping in at the Riverside Commons center.