Billionaire investor and the founder of Bridgewater Associates, Ray Dalio, has expressed his preference for investing in ‘hard money’ assets like gold and bitcoin over debt-related assets, as global political and economic volatility is leading to growing levels of indebtedness. ‘Hard money’ is essentially a currency supported by tangible commodities like gold or silver, or in bitcoin’s case, its stable and controlled supply.
Ray Dalio Prefers Bitcoin and Gold Over Debt-related Assets
During a speech at a financial conference in Abu Dhabi on Tuesday, Dalio warned of an impending debt crisis and remarked, “I believe there is likely to be a looming debt money problem. I want to avoid debt assets like bonds and debt, and instead hold hard money such as gold and bitcoin.”
Both gold and bitcoin have been trading near all-time highs as investors resort to hedging against economic instability, geopolitical tensions, and changing monetary policies. Last week, bitcoin crossed the $100,000 mark for the first time, on the heels of the ‘Trump trade phenomenon’ and positive plans from US President-elect Donald Trump for crypto’s future, including naming Paul Atkins as the new SEC Chair.
Dalio also spoke on the growing indebtedness in major economies, including the US and China, noting that the current trajectory is unsustainable. He emphasized, “The debt seen in these countries has reached unprecedented levels, and it is unlikely they will avoid a debt crisis that will lead to a significant devaluation of money in the years ahead.”
According to Dalio, debt, money, and the economy are one of five major trends that will shape the future. The other forces he identified include domestic political issues driven by wealth and value disparities, and external geopolitical factors, such as the growing tensions between the US and China. Acts of nature, i.e., natural disasters, pandemics, and climate change, are the fourth force. He believes the fifth force is disruptive technology. Speaking of new technologies, Dalio shared that he is now focusing on investing in companies that leverage these innovations to enhance their operations, rather than those simply focused on selling the most products or services.
Bitcoin Current Market Trends
As for Bitcoin’s market value, it is currently quoted at $97,306, after a rise of 0.72%.
Courtesy: Coinmarketcap
Its market cap, too, has gone up by 0.79% to $1.92 trillion. Bitcoin’s 24-hour market volume has witnessed slight setback after falling by 13.49% to $99.93 billion.
