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Ray Dalio Prefers Bitcoin Over Bonds

Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, said he prefers investing in “hard money” like bitcoin and gold over debt assets, given rising global indebtedness.

In a speech at the Abu Dhabi Finance Week conference, the veteran investor referred to “unprecedented levels” of debt seen in all major countries, including the United States and China, stressing that current levels are unsustainable.

“It is impossible for these countries to be able to not have a debt crisis in the years ahead that will lead to a great decline of [money] value,” Dalio said.

He continued that he wants to “steer away from debt assets like bonds and debt, and have some hard money like gold and bitcoin.” Dalio sees bitcoin and gold as stable hedges against economic uncertainty.

The billionaire investor was not always so keen on bitcoin. Previously, Dalio believed crypto would not succeed as hoped. But he has emerged as a major bitcoin advocate in recent years.

In 2022, Dalio said allocating up to 2% of a portfolio to bitcoin, in addition to gold, is reasonable to hedge against inflation. 

Dalio’s take further legitimizes bitcoin as a hedge against unsound monetary policies. As nations continue debasing fiat currencies, bitcoin’s fixed supply makes it a safe haven.

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