Ray Dalio: Bitcoin Is a More Favorable Inflation Hedge than Bonds

Ray Dalio: Bitcoin Is a More Favorable Inflation Hedge than Bonds

Ray Dalio affirmed that he prefers Bitcoin as an inflation hedge over government bonds. The co-chief investment officer or co-CIO of Bridgewater Associates, the world’s largest hedge fund, expressed his perspective in the recent annual Consensus conference conducted by the digital currency news portal, CoinDesk.

We are pleased to learn about Mr. Dalio’s announcement regarding his views and relationship with Bitcoin. We have expected that his latest statement about virtual currencies would come, which exhibits a complete 360-degree turn from his previous skeptic comments about these digital assets.

Dalio mentioned that he holds some units of Bitcoin. However, his proclamation about his cryptocurrency investment did not comprise how much of his portfolio is allocated to the world-famous cryptocurrency or other virtual currencies.

Nevertheless, Dalio admitted that he prefers Bitcoin over the bonds issued by governments. Based on the news posted online by personal finance, business, and markets news source Yahoo! Finance, the American billionaire, who founded Bridgewater Associates in New York in 1971, remarked that the more investors create savings in the world-famous cryptocurrency, the more they might relay that they would rather possess Bitcoin than the government bond.

Dalio affirmed that Bitcoin, which trades at exactly US$35,840.14 at the time of writing, according to the information posted on, is a better inflation hedge than government bonds. He discussed the inflationary issues that have rattled stock markets in recent weeks and fueled Bitcoin’s resurgence.

The world’s largest hedge fund’s founder also said that he thinks Bitcoin’s largest risk is its success. We have long expected that billionaires, including Mr. Dalio, would change their minds regarding cryptocurrencies, and we are pleased with this latest development.

Late last year, we gathered that Mr. Dalio questioned cryptocurrencies’ massive recovery. We can also remember the billionaire investor had said that he could not imagine central banks, multinational firms, businesses, and big institutional investors utilizing Bitcoin.

Mr. Dalio even contrasted the world-famous cryptocurrency with gold, which is the third-highest reserve asset that the world’s central banks possess.  Furthermore, we can recall that he even posted a Twitter message, saying that he might be missing something about Bitcoin, and thus, he would appreciate getting corrected.

Mr. Dalio’s change of mind is clear now. Moreover, we believe that the reports about major companies like Tesla, Goldman Sachs, and Morgan Stanley in recent times partly convinced the prominent hedge fund manager to make the notable pivot.

With this development, we believe that more longtime Bitcoin and cryptocurrency critics like Mr. Dalio would soon change their viewpoints and become a digital currency backer. Indeed, this auspicious possibility is encouraging as it would help cement Bitcoin and other cryptocurrencies’ growing legitimacy and acceptance in the contemporary financial markets.

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