Hedge fund manager Ray Dalio remains bullish on Bitcoin (BTC) in 2022, listing three primary reasons why Bitcoin is “impressive.” In a recent interview with The Investors Podcast, he talked up gold and BTC as an inflation hedge.
When prompted by interviewer William Green about what a sensible allocation for a layperson would be, Dalio said that he agrees with fellow billionaire Bill Miller’s suggestion that 1%–2% is the suitable allocation.
He defined that the community has by no means been hacked; it has no higher competitor; and BTC adoption charges would counsel that it might additional chip away at gold’s market capitalization:
“Bitcoin now is worth about $1 trillion, whereas gold that is not held by central banks and not used for jewelry is worth about $5 trillion. When I look at that, I keep that in mind because I think, over time, inflation hedge assets are probably likely to do better.”
The founding father of the world’s largest hedge fund, Bridgewater Associates, Dalio echoed feedback made final 12 months in the course of the latest interview with the podcast, saying he was impressed that Bitcoin has survived the previous decade whereas reiterating that he’s “not favorable to cash.”
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Dalio did caveat his musings on the rise of Bitcoin, highlighting the zealotry surrounding the Bitcoin neighborhood as being a doable Achilles heel, and as is to be anticipated for the investor referred to as “Mister Diversification,” he additionally requested a broader query relating to digital property:
“When does somebody collect, take the money they made in Bitcoin and then diversify that and, in other words, move to other things?”
He waxed lyrical about nonfungible tokens and different cash as potential diversification locations. For the second, nevertheless, BTC occupies a spot in his “inflation hedge asset class” alongside gold.