The popular American Billionaire investor and hedge fund manager, Ray Dalio did not think that stablecoins and Bitcoin would be a good alternative to Fiat currencies. He instead wants to see an “inflation-linked coin,” be brought to the masses that would serve to ensure consumers secure their buying power.
Ray Dalio recently became a part of CNBC’s Squawk Box show. He discussed the FED decision, the relative attractiveness of cash, bonds, and equities, and the value of crypto. During the show he also warned about “an economic war with China.”
According to CNBC’s Squawk POD, “The Federal Reserve (FED) raised interest rates 25 basis points for the eighth time in the last year. The Founder of Bridgewater is changing his mind for one his famous calls “Cash no longer trash.” He instead said it is more attractive than stocks and bonds.
In an extended interview exclusive to CNBC, Dalio was reading the economic signals and warned the investors. He said “we’re at the brink that you could have an economic war of sanctions with China that would be shocking to the economy, much worse than the Russian war. You’re at a point where both sides are so scared of that, they’re working to establish a floor.”
Over the FED’s inflation battle Dalio thinks “you’re not going to see an easing that’s built into the curve. He believes Jay Powell, even when you look at the bond price. When you look at the bond rate, it looks like a low rate. So, he thinks you’re not going to see the easing.”
Dalio also included crypto in his conversation and said “Bitcoin has no relation to anything. It’s a tiny thing that gets disproportionate attention. The value of $BTC is less than 1/3 of $MSFT stock. It’s not an effective store of wealth. But we are in a world where money as we know it is in jeopardy.”
Dalio further dismissed Stablecoins as an effective form of money as they mirror the state-backed Fiat currency. He instead proposed the creation of an “inflation-linked coin,” that would serve to ensure consumers secure their buying power.
Dalio suggests the closest thing to that is “an inflation index bond.” He further added, “If you created a coin that says OK this is buying power that he know he can save in and put his money in over a period of time and transact in anywhere, he think that would be a good coin.”
Source: https://www.thecoinrepublic.com/2023/02/04/stablecoins-and-bitcoin-are-not-good-alternate-of-fiat-ray-dalio/