Ray Dalio, a billionaire investor, has stated that fiat money is under “jeopardy” as an effective store of wealth, but he does not think that Bitcoin (BTC) and crypto stablecoins will be the answer to the problem.
On February 2, the founder of the hedge fund company Bridgewater Associates appeared on CNBC’s Squawk Box to discuss his concerns regarding the “effective money” status of the United States dollar and other reserve currencies because of the substantial amount of cash that has been printed using these currencies.
“We live in a world where the form of money that we are used to is under peril. We are creating as well much money, and it’s not just the United States doing it; it’s all of the reserve currencies.”
Nevertheless, Dalio was quick to add his opinion on whether Bitcoin (BTC) was a viable answer to the issue, keeping in mind that regardless of everything it has done in “12 years,” it is still as well unpredictable to function as money:
“This is not going to be a productive use of money. It does not function very well as a means of storing riches. “He argued that it is not a viable medium of trade since it is not efficient.
Crypto Stablecoins, which are replicas of state-backed fiat currency, were another kind of digital currency that he thought was ineffective as a form of money.
Instead, Dalio recommended the introduction of a “inflation-linked currency,” which would help customers preserve their purchasing power in the face of growing prices.
“The item that comes the closest to that is something was known an inflation index bond,” he stated. ” Nonetheless, if you developed a coin that reveals OK, this is purchasing power that I know I can save in and put my money in over a period of time and trade in everywhere, I believe that would be a terrific coin.”
” This is why, I believe that you are going to witness the creation of currencies that you have not seen before and that possibly likely will end up becoming coins that are both beautiful and viable. He continued by saying, “I don’t believe Bitcoin (BTC) is the answer.”
On the other hand, Dalio’s assessment of Bitcoin (BTC) and the practicality of an inflation-linked currency did not get widespread support from the financial community.
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