Ray Dalio Discusses Bitcoin and Gold as Investment Tools

According to Foresight News, Ray Dalio, founder of Bridgewater Associates, shared his views on Bitcoin and gold during his debut on a Chinese podcast. Dalio revealed that he holds a small amount of Bitcoin as a diversification tool but finds gold more appealing. He described gold as the second-largest reserve currency and noted that Bitcoin, while a potential store of wealth, has drawbacks, such as central banks not holding it. Dalio emphasized that gold is unique as an asset individuals can own without it being someone else's liability, meaning its value is determined by market supply and demand rather than the solvency of issuers, governments, or banks. Dalio also discussed stablecoins, highlighting their significant advantages in transactions. However, he pointed out that stablecoins typically do not offer interest, making them less effective as a wealth storage tool compared to interest-bearing monetary assets. He suggested that inflation-indexed bonds, which provide compensation based on inflation rates, are a better asset choice than stablecoins. Nonetheless, he acknowledged that stablecoin buyers, often from emerging markets, prioritize transaction convenience over interest rates.