Ray Dalio, founder of the popular hedge fund Bridgewater Associates, advocates investing in hard assets like Bitcoin and gold to hedge against an upcoming debt crisis.
The billionaire investor made the recommendation in a keynote address on December 10 at the Abu Dhabi Finance Week (ADFW).
According to Dalio, investing in these hard assets- Bitcoin and gold- will serve as a hedge against economic uncertainty and global debt. While backing Bitcoin and gold, the veteran investor disclosed plans to avoid debt assets, especially bonds.
Upcoming Debt Crisis
Notably, Dalio predicted that most major economies, such as the U.S. and China, will experience unsustainable debt levels, leading to a future decline in the value of money.
In his view, economic debt is among the five key forces capable of impacting the global economy. The other four forces include money, countries’ internal and external political conflicts, the economy, and acts of nature, like natural disasters.
The veteran investor encouraged people to focus on the big forces impacting global economies instead of embroiling themselves with insignificant issues.
Furthermore, he advocated for a strategic and diversified investment approach in addressing threats and opportunities.
Currently, Dalio mentors the committee overseeing Bridgewater Associates’ investment strategies. He assumed this role after stepping down as the company’s chairman in 2021.
Dalio Engagement with Crypto
Dalio was not a fan of crypto in its early days. Notably, in 2020, he expressed skepticism about its long-term success, noting that it would not succeed as many investors anticipated.
He also took a swipe at Bitcoin, saying the asset is not an effective medium of exchange. In 2021, Dalio predicted that several countries might ban cryptos due to their risky nature.
Interestingly, his views have changed over the years. Two years after criticizing Bitcoin, he urged investors to allocate up to 2% of their portfolio to BTC to hedge against inflation.
Meanwhile, Bitcoin is not the only crypto that has captured Dalio’s interest. As reported earlier, the billionaire investor revealed he previously invested small funds in Ethereum (ETH), the second-largest cryptocurrency by market cap.
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Source: https://thecryptobasic.com/2024/12/11/billionaire-investor-ray-dalio-predicts-global-debt-crisis-backs-investment-in-bitcoin-and-gold/?utm_source=rss&utm_medium=rss&utm_campaign=billionaire-investor-ray-dalio-predicts-global-debt-crisis-backs-investment-in-bitcoin-and-gold