Ray Dalio, a hedge fund manager, remains bullish about Bitcoin (BTC), in 2022. He listed three main reasons why Bitcoin is “impressive” and discussed how he views gold and BTC being an inflation hedge.
Dalio agreed with Bill Miller’s recommendation that 1% to 2% be a reasonable allocation when he was asked by William Green, an interviewer, about the best allocation for laypeople.
He said that the network had never been hacked and that there is no competitor. BTC adoption rates suggest that it could continue to chip away at gold market capitalization.
“Bitcoin is now worth approximately $1 trillion. Gold that isn’t held by central banks is worth around $5 trillion. This is something I consider when I see it. I believe inflation hedge assets will do better over time.
Dalio, the founder of Bridgewater Associates, the largest hedge fund in the world, echoed last year’s comments during the podcast interview. He said he was impressed by Bitcoin’s survival over the past decade, while also stating that he is not a fan of cash.
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Dalio did not caveat his thoughts on Bitcoin’s rise, but he highlighted the enthusiasm surrounding Bitcoin as a potential Achilles heel. As is to be expected from the investor “Mister Diversification,” Dalio also asked a wider question about digital assets.
“When someone collects, they take the Bitcoin money and then diversify it, or move on to other things.”
He waxed poetic about nonfungible tokens, and other coins, as diversification destinations. BTC, however, is currently his inflation hedge asset class alongside gold.