Ray Dalio: “Fiat money in danger, but bitcoin not the solution”

Ray Dalio, the manager of the largest hedge fund in the world, has always been critical of bitcoin (BTC) in the past. However, in May 2021 he announced that despite this criticism he owns the flagship of the crypto industry. The main reason for this was the fact that, in his opinion, the US dollar was about to lose a lot in value due to large-scale inflation.

However, in early 2022, he called bitcoin “impressive” and shared the belief that 1% to 2% of every portfolio should consist of BTC.

On the other hand, the position in which Dalio compares fiat money to waste has remained extremely consistent. In May 2022, he therefore said that it will not be long before many people will adopt his opinion: ”cash is trash”.

“BTC is not the solution”

In a recent interview with CNBC, Dalio shared his thoughts on Bitcoin as a possible solution to fiat currency problems. The billionaire indicated that bitcoin would not be effective if store of value nor as a medium of exchange. Dalio also stressed that stablecoins are a replica of state-backed currencies and not an effective form of money.

Dalio did indicate that what the crypto industry and Bitcoin have been doing over the past 12 years has been amazing. He has also previously referred to the fact that Bitcoin has proven itself because it has never been hacked.

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Criticism from Bitcoin community

Bitcoiners responded to the interview with quite a bit of criticism. Like this responded someone by saying that Bitcoin exactly fits Dalio’s description of what money should be.

Another Twitter user mentioned several inherent features of Bitcoin and pointed out that this is the solution Dalio is looking for. Bitcoin’s resistance to censorship, neutrality, openness, limited supply and freedom of scrutiny, he says, would be the answer to the monetary problem outlined by Dalio.

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