Ray Dalio Is Right About The US Dollar, But So Wrong About Bitcoin

Ray Dalio is the founder, co-Chief Investment Officer and co-Chairman of Bridgewater Associates, which is a global macro investment firm and is the world’s largest hedge fund. Ray Dalio Bloomberg is the world's 58th wealthiest person, worth an estimated $19 billion. Ray Dalio accumulated his wealth because he thought differently about the Markets.

While at Bridgewater Ray invented several investment strategies including: Risk Parity, Currency overlay and Portable alpha. Risk parity is a conceptual approach that attempts to equalize risk by allocating funds to a wider range of categories such as stocks, government bonds, credit-related securities and inflation hedges (including real assets, commodities, real estate and inflation-protected bonds), while maximizing gains through financial leveraging.

Earlier this year, Ray said globally, corporations will lose $12 trillion due to COVID-19 and the US, COVID-19 will cost corporations up to $4 trillion. Ray also announced that he was is doubling down on the “cash is trash” theme. Ray's reference point is the 1930-1945 period, when interest rates were at 0%, where the government was printing money and buying financial assets doesn’t, but the money wasn't getting to the people. So government printed more money to buy up the debt on their books.

In a recent interview with MarketWatch, reiterated his bearish bet on the US dollar, also gave his opinion on Bitcoin.

He said that the US will need to be massively re-engineered in order to avoid losing its reserve currency status.

“But if we don’t do this engineering well, we’re going to spend in an unlimited way and deal with that by creating debt that won’t ever be paid back, and we will risk losing the reserve currency status of the dollar.”

Despite his concerns about the future of the dollar, Dalio is not bullish on Bitcoin. In an interview at the World Economic Forum in Davos, Switzerland, he warned against BTC, saying it doesn’t serve the two main purposes of money.

“There’s two purposes of money, a medium of exchange and a store hold of wealth, and bitcoin is not effective in either of those cases now.”

Ray when on to say he doesn't believe in Bitcoin, but gold instead. This is the sole reason why we are are participating, passively or actively the greatest wealth transfer in human history because the younger generations don't want gold, they want cryptos. It's unfortunately because Ray has the wealth to pass it on to his kids and their grandkids, but is too stuck in his ways. Hopefully he will get his head out of his ass before it's too late.

This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.

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