Home Crypto Bitcoin Won’t Be an Effective Forex, Store of Value or Medium of Change, Says Hedge Fund Legend Ray Dalio

Bitcoin Won’t Be an Effective Forex, Store of Value or Medium of Change, Says Hedge Fund Legend Ray Dalio

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Bitcoin Won’t Be an Effective Forex, Store of Value or Medium of Change, Says Hedge Fund Legend Ray Dalio

Source: dailyhodl.com

In a new interview on CNBC’s Squawk Box, hedge fund veteran Ray Dalio says Bitcoin (BTC) is getting more attention than it deserves.

The founder of asset management firm Bridgewater Associates says that what Bitcoin accomplished in the last 12 years is amazing, but investors still have better choices than putting their money on the benchmark cryptocurrency.

“It’s a tiny thing that gets disproportionate attention. You know the value of Bitcoin is less than a third of the value of Microsoft stock. You can go into industries. Biotech and many other industries are more interesting than Bitcoin.”

Dalio says that Bitcoin falls short as an effective asset, but traditional money also has its own problems.

“It’s not going to be an effective money, not an effective store hold of wealth or effective medium of exchange, but we’re in a world in which money as we know it is in jeopardy. 

We’re printing too much and it is not just the United States, all the reserve currencies—what is going on in Euro, what is going on in Yen, so in that world, the question is what is money and how is that going to operate.

I think the question over the next number of years is really what is money, not just as a medium of exchange, but as a store hold of wealth.”

He says that an inflation-linked coin that gives its owner buying power would make a good digital asset.

“If you want a digital currency, you have to do things differently. I don’t think that stablecoins are good because you’re getting fiat currency again. What would be best is an inflation-linked coin. In other words, something where basically you would say this is going to give me buying power because every individual wants to secure their buying power.

If you put it in Bitcoin, it goes like this, who knows what happens?

If you create a coin that says this is buying power that I know I can save in and put my money in over a period of time and I can transact anywhere, I think that that would be a good coin.”

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