Billionaire US hedge fund manager and philanthropist who served as co-chief investment officer of the world’s largest hedge fund, Bridgewater Associates Ray Dalio, said investors should have a 1-2% allocation in Bitcoin.
Specifically, in the interview with The Investors Podcast, Ray Dalio, known as “Mr. Diversification, ”said he agreed that Bitcoin is expected to represent a small percentage of investor portfolios in 2022.
By the way, when interviewer William Green asked him what would be a reasonable allocation of his wallet to Bitcoin, Ray Dalio replied:
“I agree with billionaire Bill Miller’s suggestion. That the reasonable split is 1% to 2%. I think that’s correct.
Ray Dalio, allocating 1% to 2% in Bitcoin is reasonable
In fact, as Ray Dalio said in December, “Bitcoin has some merit as a small part of a wallet.”
However, on the We Study Billionaires podcast, Dalio acknowledges that Bitcoin has “pros and cons.” “Although it has become important, I am concerned that the government will ban cryptocurrency and its use in ransomware attacks.”
He also mentioned the fact that Bitcoin is viewed as a digital gold and an inflation hedge by its supporters. In fact, it can be compared to gold because by design there is a limited supply of Bitcoin.
“Bitcoin is now worth (market capitalization) around $ trillion, while gold that is not in the hands of central banks and not used for jewelry is worth around $ 5,000 billion. When I see this I keep it in mind because I think over time the hedging assets are likely to pay off very well. “
He added: “I think inflation hedging assets should improve over time. That’s why I’m not a pro at cash and that sort of thing. “
Curiously, Ray Dalio, in 2017, called Bitcoin a bubble. And, as of November 2020, he was a crypto-skeptic, lambasting his volatility.
In particular, in September 2021, during an interview with CNBC, he indicated that cash was “junk” while showing a positive stance towards Bitcoin and cryptocurrencies.
“First of all, know that money is junk, so don’t keep it in cash. “
Likewise, he said governments don’t want cryptocurrencies to be successful. But that doesn’t mean investors shouldn’t diversify.
Ultimately, if he really succeeds, they’ll kill him. But that doesn’t mean it doesn’t have room. ‘
However, the billionaire investor said in December 2021, on Lex Fridman’s podcast, that he believed crypto assets, including Bitcoin, to be secondary collateral for him.
Dalio has since confirmed that he owns Ethereum in addition to Bitcoin. And he described the two holdings as “a relatively small part” of his portfolio without further details.
I say goodbye with this sentence from Ana María Matute: “The illusion of life makes us endure the proximity of death.