Ray Dalio, the Co-Chairman and Co-CIO of Bridgewater Associates, labeled cash as a risky place to park wealth, also he did not mention Bitcoin (BTC) as an alternative.
"Cash is almost always the worst investment," Dalio said. "You should think a little bit unconventionally," he said, mentioning a small $gold allocation as a possibility, as well as noting the importance of diversification. https://t.co/L2R3d3Acei — Ms Golden Rockstar (@bbcrich1) April 12, 2020
On April 9, it has been reported in a recent TED interview that Dalio told Corey Hijam, the TED interviewer:
“Do not think that cash is a safe investment.”
However, Dalio said:
“Cash is a seductive investment because it doesn’t have as much volatility, but it taxes you and your buying power about 2% a year.”
Market Faced Crashing Value
As the recent COVID-19 measures ceased the economy, markets of all shapes and sizes faced crashing value by pushing investors into cash.
“Cash is almost always the worst investment.”
He added by mentioning a small gold allocation as a possibility, as well as noting the importance of diversification:
“You should think a little bit unconventionally.”
However, Dalio did not mention Bitcoin as an option surrounding these comments.
It has been analyzed that Dalio mentioned Bitcoin earlier in 2020 during an interview with CNBC, in which he said that Bitcoin hosted too much volatility to function as an adequate store of value.
“There are two purposes of money; a medium of exchange and storehold of wealth. Bitcoin is not effective in either of those cases now.”
Dalio Highlighted Libra
Dalio highlighted Facebook’s Libra as a more promising option, as he noted that big players, such as central banks, would more likely head for gold than Bitcoin.
Thus, Chamath Palihapitiya, the Billionaire, also recently mentioned Bitcoin’s volatility and current usage as ineffective by pointing toward the asset’s potential adoption approximately 10 years from now, pending various circumstances.