Ray Dalio, a billionaire investor, has stated that fiat cash is under “jeopardy” as a reliable shop of wealth, however he does not believe that Bitcoin (BTC) and stablecoins will be the response to the issue.
On February 2, the creator of the hedge fund company Bridgewater Associates appeared on CNBC’s Squawk Box to discuss his issues relating to the “effective money” status of the United States dollar and other reserve currencies as an outcome of the enormous quantity of cash that has been printed utilizing these currencies.
“We live in a world where the form of money that we are used to is under peril. We are creating too much money, and it’s not just the United States doing it; it’s all of the reserve currencies.”
Nevertheless, Dalio fasted to include his viewpoint on whether Bitcoin was a feasible response to the issue, keeping in mind that in spite of whatever it has done in “12 years,” it is still too unforeseeable to operate as cash:
“This is not going to be a productive use of money. It does not function very well as a means of storing riches. “He declared that it is not a feasible medium of trade because it is not effective.
Stablecoins, which are reproductions of state-backed fiat currency, were another sort of cryptocurrency that he believed was inefficient as a type of cash.
Instead, Dalio advised the intro of a “inflation-linked currency,” which would assist consumers maintain their acquiring power in the face of increasing rates.
“The item that comes the closest to that is something called an inflation index bond,” he stated. “However, if you developed a coin that says 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.”
“Therefore, I believe that you are going to witness the creation of currencies that you have not seen before and that most likely will end up becoming coins that are both beautiful and viable. He continued by saying, “I do not think Bitcoin is the response.”
On the other hand, Dalio’s evaluation of Bitcoin and the usefulness of an inflation-linked currency did not get prevalent assistance from the monetary community.