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It’s “very impressive” that the cryptocurrency has “held up” for a decade

By on December 17, 2021 0

Ray Dalio, who runs the world’s largest hedge fund, Bridgewater Associates, has been slow to embrace cryptocurrency. He volunteered at a Coindesk event in May to say he “has bitcoin,” but he also told CNBC this fall that regulators will “kill” the cryptocurrency if it becomes too efficient.

He predicted in an interview with Yahoo Finance late last year that he didn’t think digital currencies “would succeed as people hoped”, in part because of possible government action. And in a separate interview with Yahoo Finance last May, he said bitcoin was likely to be banned.

“Each country cherishes its monopoly on controlling supply and demand. They don’t want other funds to be exploited or competing because things can get out of hand, ”said Dalio. “So I think it would be very likely that you would have it under a certain set of prohibited circumstances like gold.” was an outlaw. “

But this week, in a new interview Monday for Yahoo Finance influencers with Andy Serwer, crypto returned and although he didn’t ask if the government would end up banning the currency, the tone of the billionaire investor had noticeably changed from previous reviews.

On the one hand, he revealed that he was sinking deeper and deeper into the pool with an investment in Ethereum (ETH-USD) in addition to his bitcoin (BTC-USD), although he refused to reveal. exactly how much he was holding. He also said he took note of the industry’s resilience.

“I think it’s very impressive that over the past 10, 11 years this programming has always held up,” he told Yahoo Finance editor-in-chief Andy Serwer. “It hasn’t been hacked and so on and it has an adoption rate.”

Ray Dalio, Co-Chairman and Co-Chief Investment Officer of Bridgewater, at a conference in New York in 2021. (REUTERS / Brendan McDermid)

But the legendary founder of hedge funds is still far from being a crypto evangelist. “I am very committed to diversification,” he said of his investment strategy. “And that’s a relatively small part of the portfolio.”

In his new book, “Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail”, Dalio focuses heavily on the role of money and currency manipulation on the plight of nations.

“No system of government, no economic system, no currency and no empire lasts forever, yet almost everyone is surprised and ruined when they fail,” he writes in the book.

But notably, based on research in the book, terms like bitcoin and cryptocurrency did not deserve any mention among the book’s 564 pages.

Nonetheless, Dalio is much more enthusiastic about crypto than a more traditional currency – cash, especially in an inflationary environment.

” I see [crypto] as an alternative currency in an environment where the value of cash depreciates in real terms, ”he says. Later he added: “I would like to say that the money I was quoted [saying] “Money is a garbage can. “This money, which most investors think is the safest investment, is, I think, the worst investment.”

The investor spoke to Yahoo Finance just days after the Labor Department announced that US prices rose at their fastest pace in 39 years for November. When Yahoo Finance asked Dalio how concerned he was about inflation, the legendary hedge fund manager replied, “I’m very worried about this. Because the amount of money and credit that needs to be produced and is budgeted for is a big increase. “

Ben Werschkul is a writer and producer for Yahoo Finance in Washington, DC.

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