Billionaire Hedge Fund Manager Ray Dalio Backs Bitcoin Over Traditional Bonds

Billionaire hedge fund manager Ray Dalio suggested in an interview released on Monday that he backs Bitcoin over traditional bonds.

During the interview with CoinDesk's Chief Content Officer Michael J. Casey, Dalio, the founder of the world's top hedge fund, Bridgewater Associates, spoke about an inflationary scenario, where Bitcoin becomes more attractive for investors as the value of the dollar decreases.

"The more we create savings in [Bitcoin], the more you might say, 'I'd rather have Bitcoin than the bond.' Personally, I'd rather have Bitcoin than a bond," Dalio said in the interview with CoinDesk. "And then the more that happens, then it goes into Bitcoin and it doesn't go into credit, then [governments] lose control of that."

Dalio also announced that he has invested in Bitcoin, the world's most popular cryptocurrency. "I have some Bitcoin," Dalio said.

Newsweek reached out to Dalio for further comment, but did not receive a response in time for publication.

Dalio's comments during the interview indicated a different stance on Bitcoin than in the past. In a series of tweets published in November, Dalio stated that "Bitcoin is not very good as a medium of exchange because you can buy much with it...it's not very good as a storehold of wealth because it's volatility is great and has little correlation with the prices of what I need to buy so owning it doesn't protect my buying power."

According to CoinDesk, the interview with Dalio was recorded on May 6, but released on Monday during "Consensus by CoinDesk 2021."

The release of the interview comes as the price of Bitcoin and several other cryptocurrencies have continued to fall.

According to MarketWatch, the price of Bitcoin fell more than 50% on Sunday when compared to its peak in the middle of April. As of publication time, Bitcoin was priced at around $37,550 according to CoinDesk.

The fall in Bitcoin's price was in part prompted by Tesla CEO Elon Musk's announcment that the electric car company would no longer accept Bitcoin for vehicle purchases, citing the cryptocurrency's "insane" energy use.

In addition to the announcement by Tesla, China recently blocked financial institutions and other payment companies from conducting services related to Bitcoin transactions. Three financial industry associations in China also warned investors from trading Bitcoin and other cryptocurrencies.

Bitcoin
A visual representation of the digital Cryptocurrency, Bitcoin. Dan Kitwood/Getty

"Prices of cryptocurrency have skyrocketed and plummeted recently, and speculative trading has bounced back. This seriously harms the safety of people's property and disturbs normal economic and financial orders," the agencies from regulators supervised by the People's Bank of China and the China Insurance and Banking Commission said in a statement, according to CNN.