Billionaire Believes Fiat is in Danger but, Bitcoin is Not the Solution
- Ray Dalio believes “Bitcoin has no relation to anything,” and added that “it’s a tiny thing that gets disproportionate attention.”
- It’s [BTC] not gonna be an effective money, it’s not an effective store of wealth, it’s not an effective medium of exchange,” said Dalio.
- Dalio added that fiat currencies are in danger and advised the creation of an “inflation-linked” coin to allow consumers to secure their buying power.
- The billionaire investors stated that stablecoins are directly linked to fiat currencies and are also not suitable for exchange purposes.
Billionaire investor and hedge fund manager Ray Dalio has been a supporter of the world’s largest cryptocurrency, Bitcoin (BTC), and other cryptocurrencies for quite some time. However, in his recent statement on rising inflation and the global macroeconomic situation, the founder of American investment management firm Bridgewater, stated that fiat currencies are in danger of collapsing and stablecoins or cryptocurrencies are not the solution.
In his recent interview with CNBC’s Squawk Box, Dalio stated that “Bitcoin has no relation to anything,” while adding that “it’s a tiny thing that gets disproportionate attention.”
“The value of BTC is less than 1/3 the value of Microsoft stock. Biotech and many other industries are more important than Bitcoin. It’s not gonna be an effective money, it’s not an effective store of wealth, it’s not an effective medium of exchange but, we are in a world where money as we know it is in jeopardy,” Dalio added in his statement.
Dalio pointed out that the euro, the yen, and all the other major currencies are on the brink of collapse because the authorities are “printing too much,” which has led to uncontrollable inflation. Moreover, he also added that stablecoins are not effective means of monetary exchange because they only represent the government’s fiat currencies and, as a result, are subject to the same dangers as fiat currencies.
The solution that Dalio provided was the creation of an “inflation-linked coin,” which will allow consumers to secure their buying power irrespective of the global macroeconomic scenario. Moreover, the billionaire added that Bitcoin is not a good store of wealth because it is not immune to changing circumstances.
The billionaire stated that the world will see the development of “coins that you haven’t seen that probably will end up being attractive, viable coins,” while adding that in his opinion, Bitcoin is not “it.”
“The closest thing to that is an inflation index bond, but if you created a coin that says OK this is buying power that I know I can save in and put my money in over a period of time and transact in anywhere, I think that would be a good coin,” Dalio said.
There were many responses to Dalio’s take on a new “inflation-linked coin,” but one of the most notable replies came from digital asset manager Eric Weiss of Bitcoin for Family Officers. Weiss stated that Dalio is “vaguely describing a solution that doesn’t and can’t exist.”
On the other hand, another billionaire investor, Mike Novogratz, who is also the CEO of Galaxy Investment Partners, stated that Bitcoin will hit a price tag of $500,000 but “not in five years” due to unfavorable conditions. The billionaire investor stated that Federal Reserve Chairman Jerome Powell found “his central banking superpowers,” which worsened BTC price action.