Billionaire Ray Dalio Talks About His Investment In Bitcoin And Ethereum
Billionaire Ray Dalio has revealed that he holds Bitcoin and Ethereum holdings. Along with Dalio many billionaires have moved from cash into cryptocurrencies, as fiat currencies continue to lose value in the market. Dalio also gave this as a reason for holding the crypto.
The value of cash as an investment has grown concerns to both institutional and individual investors, which has pushed them move their holdings into cryptocurrencies. Rising inflation rates has pushed diversification into cryptocurrencies such as bitcoin and ethereum.
Dalio’s Investment in Bitcoin And Ethereum
Billionaire Ray Dalio shared with Yahoo! Finance his views on the financial market and how to be successful in it. Dalio once again confirmed that he owns bitcoin but this time he also revealed that he had added ethereum to his holdings. This was in response to a direct question from Serwer about the billonaire’s crypto holdings.
Dalio didn’t go into detail how much of bitcoin he holds, which is understandable, but said that he did not own a lot of either bitcoin or ethereum. To the point why he is holding these cryptocurrencies, Dalio explained that it was because he viewed it as an alternative to cash:
“I view it as an alternative money in an environment where the value of cash money is depreciating in real terms.”
Diversification Is Key
Dalio sees his investment in Bitcoin and Ethereum as a diversification move. He said that investing in cash is the worst investment there is, because cash loses buying power and as such, the longer one holds cash, the lesser the buying power of that cash. He suggested that investors should not “judge anything in your returns or your assets in nominal terms, in terms of how many dollars you have. View it in terms of inflation-adjusted dollars.”
According to the billionaire it is important for investors to always diversify their portfolio and that is what he has done with his crypto investments, even though it is still a relatively small part of that portfolio.
“The important thing is to diversify one’s portfolio well. Because we know from the surprises in the balance. We also know that those asset classes on average significantly outperform and will significantly outperform cash.”
Talking about diversification, he said:
“Diversification should be also international diversification from countries, not just asset classes, in order to have a truly well-diversified portfolio.”
