Ray Dalio, the founder of the fifth most important private company in the US- Bridgewater Associates, who is famously known for his principles in handling the debt crisis situations, came on as a speaker at Coindesk Consensus 2021. He had a one-hour conversation with Chief Content Officer Michal J. Casey to discuss the current economic climate in the US and how his stance on bitcoin changed over the years.
Dalio always considered bitcoin to be outlawed by the government, but now- he seems to show a change of heart. His long-standing view has now shifted because he considers the possibility of bitcoin becoming an ultimate store of value. Another reason why Dalio is showing interest beyond academic understanding is that- he sees the US dollar is at the edge of losing its position as a global reserve currency in the future.
As the largest hedge fund founder in the world, managing close to $101.9 billion, Dalio knows precisely how the economic machine functions and what it should not do- to reduce overall currency value. His main concern with the current inflationary situation is- financial systems are continuing to devalue the USD currency by printing more money. Here, he mainly concentrates only on monetary type inflation, and he says that assets like cryptocurrencies will hold value until the prices of bonds go up.
In the interview- when the subject of bitcoin came up, Dalio says, “ I have some bitcoin”. He expands on that by highlighting how it can overcome the inflation generated from government money supplies.
Dalio extended the topic by saying,”the world is going to change at an incredible pace and whoever wins the technology race wins it all economically and militarily.” He understands the value bitcoin brings to the technological side, but he is more concerned about the drop in value of the US dollar. His perspective on bitcoin has changed over the last nine months, and he now views it as an asset that can fight inflation. However, Dalio also mentioned that- even if bitcoin keeps going higher, it is only bringing more risk upon itself.
Born and brought up in India, Karthikeya Gutta is a crypto journalist and freelance contributor for ItsBlockchain. He covers various aspects of the industry with in-depth analysis and research. His passion towards blockchain and crypto ecosystem is mainly because he believes it can really change the world and help millions of people.
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