American billionaire Ray Dalio says crypto assets are not interesting

While the crypto space has recorded growing adoption over the past year, some traditional investors have remained sceptical. Ray Dalio, one of the most popular hedge fund managers, has stated that he is not impressed by cryptocurrencies.

Dalio stated that Bitcoin and other crypto-assets would see increased regulations and could be outlawed in some countries.

Dalio remains sceptical of crypto

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During an interview with Bloomberg, Dalio criticized the growth of this asset class. “I think too much attention is spent on crypto,” he said. He also added that digital assets were not interesting.

Despite his remarks, Dalio has invested in cryptocurrencies. He admitted that the financial sector was changing that “we’re now in an area where we’re going to have different types of money.”

While Dalio does not support the cryptocurrency sector, he remains concerned about the US economy. He said that the Federal Reserve was not acting quickly to change the monetary policy and protect against the rising inflation levels. Hence, he was worried about the economic and political future of the US.

He noted that the political risk was high, and tensions would increase over the coming years.

I think that in the 2024 elections, there is a reasonable chance that neither party will accept losing the elections. And that is something that means that democracy or a type of civil war sorts could develop in a way.

He also added that cryptocurrencies could be easily tracked by governments. This is contrary to the opinion that cryptocurrencies give people more control over their finances.

Dalio’s hedge fund is not performing well

While the cryptocurrency market has made major gains over the past year, Dalio’s hedge fund firm, Bridgewater Associates, has not been recording significant gains. In 2020, the company recorded losses of $12 billion. Bridgewater Associates is one of the largest hedge fund management firms globally. Last year, the hedge fund restructured its management team. Dalio will now be the co-chairman of the hedge fund and the co-chief investment officer. Dalio will consult investment decisions with the other CIOs, Bob Prince and Greg Jensen.