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For Ray Dalio, cash is trash and it is better to invest in Bitcoin

In an interview with US financial television network CNBC, multi-millionaire Ray Dalio talked about Bitcoin and warned investors of the danger of holding too much cash in their accounts.

“First, know cash is trash, so don’t keep it in cash”. This is the resounding statement from the founder of the world’s largest hedge fund, which manages some 140 billion in assets. 

Ray Dalio pro-Bitcoin

Ray Dalio, 72, with a personal wealth of about $15 billion, also stated that he has invested a small portion of his wealth in Bitcoin and gold, but that he is afraid that if Bitcoin becomes too successful, financial authorities will kill it.

“At the end of the day if it’s really successful, they’ll kill it. But that doesn’t mean it doesn’t have a place”,

he also told the TV network, confirming his extreme confidence in Bitcoin and cryptocurrencies as an alternative investment.

During the interview, Dalio also spoke about the different attitude of some countries towards digital currencies.

“You have El Salvador taking it on and you have India and China getting rid of it. And you have the United States talking about how to regulate it and it could still be controlled”.

Ray Dalio prefers gold to Bitcoin

Bitcoin as a new store of value on a par with gold

Ray Dalio has long been an advocate of Bitcoin, but not so much in the sense of a substitute for cash, but rather as a means of storing value, like gold, although for the moment he still seems to prefer the latter.

“If you put a gun to my head and say, ‘I can only have one’, I would choose gold”,

Dalio said in a speech in early August.

At the same time, Dalio argued that Bitcoin is an asset that people should have in their portfolios for diversification purposes.

The discussion within the financial community on the role of Bitcoin and its future use has been heated for some time, with those arguing that it could become a substitute for fiat currencies and those who see it as a possible digital substitute for gold as a store of value.

The fact that it is decentralized and therefore has great anti-inflationary power does indeed make it a very attractive alternative investment.

However, what is perhaps still holding back its adoption in this sense is its marked volatility, which makes it a still very risky investment.

In May, Dalio said that in the 1930s the United States banned the exchange and possession of gold precisely because it posed a threat to US bonds. The same thing could happen with Bitcoin, which is being criticized by both the FED and the US Treasury.

The FED and the Treasury against Bitcoin

In recent months, both the FED and Treasury Secretary Janet Allen, who is the former chair of the FED, have been very critical of the most popular digital currency. 

Jerome Powell said in April that he considered cryptocurrencies to be too speculative and therefore dangerous for investors. He added that the United States does not feel any urgency to have a digital currency at the moment.

Janet Allen was even more direct, describing the digital currency as completely unreliable and certainly not to be considered as a payment instrument, due to its absolute inefficiency in transactions.

The former chair of the FED was much more positive about blockchain technology, which she sees as a technology capable of revolutionizing electronic payment systems.

Combined with the many investigations that the SEC has launched against cryptocurrency companies over the past few months for alleged financial irregularities, it is easy to see that Dalio’s prediction about the financial authorities’ attempts to kill Bitcoin is not just a joke.


Vincenzo Cacioppoli
Vincenzo Cacioppoli
Vincenzo was born in Genova but lived most of his life in Milan. He has a degree in political science. He is a journalist, blogger, writer, and marketing and digital advertising expert. After a long experience in traditional marketing, he started working with the web and digital advertising in 2011, creating a company called Le enfants. Passionate about the web and innovation, in 2018 he started exploring the topics related to blockchain technology and cryptocurrencies. Independent cryptocurrency trader since March 2018, he now collaborates with companies in the sector as a content marketing specialist. In his blog. mediateccando.blogspot.com, he has long been primarily focused on blockchain, which he considers to be the greatest technological innovation after the Internet. His first book about blockchain and fintech is scheduled for release in November.