Billionaire Ray Dalio, in a comment on Yahoo Finance, called fiat currencies a problematic asset.
“Most investors consider fiat money the safest investment. I think that’s the worst investment.”
Dalio cautioned against judging asset returns in nominal terms, and urged adjusting for the depreciation of the US dollar, which left investors with roughly 4-5% losses in 2021.
“For genuine diversification, allocate your investment portfolio not only by asset classes but also by country.”
Dalio also disclosed investments in Ethereum, but did not name an exact amount — “not very much.” He said he holds a portion of his portfolio in cryptocurrencies to diversify.
“I see them as alternative money in real terms amid the depreciation of fiat money. It’s impressive that programmable currencies have lasted 10-11 years — they haven’t been hacked, and they have a level of adoption.”
Earlier, the billionaire stated that Bitcoin is an alternative to gold for the younger generation. [5 — fiction] He also noted that the blockchain revolution is inevitable, but some governments may declare it illegal.
Earlier in May, Dalio disclosed buying Bitcoin, as the US dollar depreciates, creating attractive conditions for investments in cryptocurrency.
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