Even if Ray Dalio can’t match Warren Buffet’s cult status, his word carries weight. The 72-year-old American is the founder and now co-director of Bridgewater Associates, the world’s largest hedge fund. Bridgewater currently has approximately $150 billion in assets under management. These include money from numerous pension and insurance funds. According to reports from CoinDesk The Connecticut investment firm plans to back an external vehicle with exposure to cryptocurrencies. However, it is said that they do not want to invest directly in Bitcoin and Co. Other well-known crypto investors are already being discussed. However, crypto involvement is said to be a very small portion of Bridgewater’s investments, he said. However, the announcement could have a certain signal effect and attract more institutional funds to the crypto space.
Ray Dalio’s path to Bitcoin
Like so many others, Ray Dalio wasn’t exactly enthusiastic about crypto at first. It was only last year that his opinion of Bitcoin and Co. seemed to be slowly changing. First, in January 2021, he described BTC as a “very cool invention” in an internal memo. In an interview with the news channel. CNBC he even classified Bitcoin as an “alternative currency” last year, but backed off a bit by emphasizing that too strict regulation poses the biggest risk to the still young internet currency. He is no longer alone in the world of hedge fund managers with his positive attitude towards cryptocurrencies. Star investor Bill Miller only had one interview earlier in the year. wealth tracking announced that he owns at least 50 percent of his wealth in bitcoin-related assets. The investor bought the first Bitcoin from him in 2014 at a price of 200 US dollars. Personalities like Paul Tudor Jones or Stanley Druckenmiller are now among Bitcoin fans.
However, Dalio’s optimism about Bitcoin may also stem from his distaste for the US dollar. In an interview at the 2019 World Economic Forum in Davos, Dalio drew a lot of attention with the statement “Cash is garbage.” In his book “Big Debt Crisis”, the 72-year-old deals with the rise and fall of the last three world reserve currencies. In Dalio’s view, currency dominance moves in three cycles that can occur simultaneously. In the first cycle, debt and financial assets are created. In the second subsequent cycle, conflicts arise due to growing wealth differences, while in the third cycle an emerging great power challenges the existing reserve currency.
BTC-ECHO magazine (print and digital)
Kryptokompass is the leading German-language magazine on Bitcoin, blockchain and cryptocurrencies since 2014.
to the magazine