Ray Dalio said he has held a small amount of Bitcoin for many years and XEM Bitcoin as a diversifier compared to gold; at the same time, he considers stablecoins not a good means of storing assets but convenient for global payments.
He stressed that Bitcoin has pros and cons, it is difficult for central banks to hold; stablecoins have value as a global clearing system but do not yield interest like interest-bearing fiat assets.
- Bitcoin is seen as a diversifier compared to gold, but it is imperfect and not suitable for central banking.
- Stablecoins are convenient for global trading and clearing but are not a means of storing interest-bearing assets.
- The impact of stablecoins on the demand for US government debt is unclear, it may just be a transfer of debt from one pocket to another.
Views on Bitcoin
Ray Dalio claims he has held a small portion of Bitcoin for years and that this investment ratio has not changed.
According to him, Bitcoin Vai as a diversifier compared to gold, but at the same time has limitations that make it difficult for central banks to accept holding. Therefore, Bitcoin is suitable for a diversified portfolio but does not completely replace traditional assets.
“I have held a small amount of Bitcoin for many years; Bitcoin is a diversifier compared to gold, but has downsides and central banks will not hold Bitcoin.”
Ray Dalio, Founder of Bridgewater Associates; Interview with Caixin
Stablecoin Reviews
He believes that stablecoins are not good means of storing assets because they are inherently convertible to the corresponding currency and do not generate interest.
The advantage of stablecoins is that they are global and act as a convenient payment/clearing system, which is suitable for investors or users who do not care about interest rates. From a financial perspective, holding interest-bearing fiat assets is often better in terms of income.
“Stablecoins are convertible to their respective currencies and are interest-free; the advantage is global adoption and a convenient clearing system.”
Ray Dalio, Founder of Bridgewater Associates; Interview with Caixin
Stablecoins and US public debt
On whether stablecoins can solve the US debt problem, he commented that if stablecoin buyers already hold US debt, it is just transferring debt from one pocket to another.
Thus, whether stablecoins increase demand for US government debt cannot be determined immediately; it depends on debt holding behavior, investment demand, and market acceptance of this intermediary instrument.
Does Ray Dalio Hold Bitcoin?
He said he has held a small amount of Bitcoin for years and that investment ratio has not changed.
Why are stablecoins not good for storing wealth?
Stablecoins are convertible to fiat and do not generate interest, so in terms of financial return they are not as good as holding fiat assets with interest.
What are the benefits of Stablecoins?
The main advantages are its global nature and ability to act as a payment/clearing system, making transactions fast and convenient.
Could Stablecoins Increase Demand for US Public Debt?
Not sure; if the stablecoin buyer already holds US debt, it is just a transfer of ownership, the impact on demand depends on market behavior.
