Billionaire Ray Dalio says ‘Blockchain is great, but let’s call it digital gold’

May 30, 2022

By Sharan Kaur Phillora

The World Economic Forum (WEF) meeting in Davos, Switzerland, which began on May 22 and closes on May 26, has dominated the news this week. Ray Dalio, the founder of Bridgewater Associates, spoke at the event about the current state of the economy, the Federal Reserve, cash, and cryptocurrencies.

Here’s what we know:

Dalio previously commented about the future of money in February, predicting that cryptocurrency will be “outlawed, probably by different governments.” Dalio is currently in Davos, Switzerland, where he is meeting with world leaders, economists, and financial giants. In an interview with CNBC’s Andrew Ross Sorkin on the broadcast Squawk Box, the founder of Bridgewater Associates spoke extensively on different parts of the economy.

Dalio spoke about the future of money and the Federal Reserve’s next monetary policies once more. The hedge fund manager feels the Fed has no choice but to sell. “The Federal Reserve will sell, individuals will sell, foreigners will sell, and the United States government will sell because it needs to fund its deficit,” according to an excerpt from Dalio’s interview. “There will be a supply/demand problem, which will result in a squeeze,” he continued.

At the WEF event, the founder of Bridgewater Associates stated that cash is currently trash. “Of course, cash is still trash,” Dalio told a reporter from CNBC. The hedge fund executive inquired, “Do you know how quickly you’re losing buying power in cash?” Dalio went on to explain what he meant when he said cash is trash.

In addition to speaking about currencies and cash in Davos, Dalio talked about cryptocurrencies being a form of digital gold.

He clarified that he prefers gold to Bitcoin because of the latter’s track record. According to Dalio, we are currently in a period where people are experimenting with new money forms. All currencies, he says, will depreciate in proportion to goods and services.

Image credit: Wikimedia commons

About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.

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