Hedge fund billionaire Ray Dalio doesn’t ‘think a lot of Bitcoin’ but still holds ‘a little bit’ Hedge fund billionaire Ray Dalio doesn’t ‘think a lot of Bitcoin’ but still holds ‘a little bit’
Ray Dalio agrees crypto investing can negatively impact mental well being.
2 min read
Updated: Jul. 16, 2023 at 2:17 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
American investor Ray Dalio said he holds a little Bitcoin (BTC) but is not a fan – instead, preferring gold.
Not a fan of Bitcoin
Sharing his thoughts with former model turned Podcaster Chris Williamson, Dalio said while he prefers gold, Bitcoin still offers things the metal cannot, such as transaction tracking and “not being liked by the government.”
At the same time, he questioned why Bitcoin, with a smaller market cap than Microsoft, gets more attention – conceding, “Who knows, maybe there’s some element of it I don’t understand.”
“Its size is about 30% of the size of Microsoft, and Microsoft is one stock among many stocks. [But] it’s given a lot more attention.”
Explaining his preference for gold over Bitcoin, the famed investor said behind dollars and euros, gold is the third highest reserve asset among central banks – adding that the yellow metal is timeless and universal.
Dalio, who is a billionaire and founder of the hedge fund Bridgewater Associates, stated that he does hold “a little bit” of Bitcoin. But given its extreme volatility, he intentionally keeps his BTC allocation low to limit downside exposure.
Espousing a prudent investment strategy, Dalio said, “I don’t think a lot of Bitcoin.”
Sanity-sapping?
Williamson offered his take by saying being a crypto investor comes at the expense of mental well-being. He interpreted Dalio’s preference for gold as a bias toward “less sanity-sapping forms of investment.”
“There is a price that you pay because of the volatility. But the price that you pay is with your own sanity.”
Dalio agreed with the assessment, saying he has seen people get very rich with crypto, but at the same time, also some who became broke because of it.
Honing in on mental health, Dalio was asked about ways to cope with the unpredictable world we live in. The famed investor pointed out that typically in depressions and war, most people remain employed and alive/uninjured – calling on people to keep things in perspective.
He also recommended people be in places of goodness, harmony, and beauty, such as being in nature.
When pressed on the inability to disconnect from the chaos and constant bad news – particularly negative financial news, Dalio maintained that disconnecting in nature and turning off the TV helps – adding that friends and family are much more important than money.
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Samuel Wan
Samuel Wan, a finance professional turned full-time crypto content creator, values individual autonomy and personal freedom in his pursuits.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ray Dalio is the Founder and Co-Chief Investment Officer of Bridgewater Associates and a Director on its Operating Board of Directors.