Ray Dalio, a billionaire has disclosed that he owns bitcoin and ethereum. Many billionaires are also open about the bitcoin and ethereum investments they have made. Many of these billionaires have made the decision to move away from cash and into cryptocurrency as it continues to decline in market value. Dalio mentioned this to be a reason for his holding the cryptocurrency.
As investors have become more concerned about cash’s value as an investment, both institutions and individuals are shifting their assets to cryptocurrencies. With rising inflation, diversifying in cryptocurrencies such as bitcoin or ethereum is becoming more common.
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Dalio is the owner of Bitcoin and Ethereum
Yahoo! interviewed Ray Dalio (billionaire) Finance for a discussion about financial markets and the best ways to be successful. Andy Serwer interviewed Dalio to confirm that he still owns bitcoin. However, this time, Serwer revealed that the billionaire had also added ethereum. This was in response to a direct question from Serwer about the billonaire’s crypto holdings.
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Dalio did not give an exact number of bitcoins he owns, although it was understandable. However, he explained that he does not have large amounts of either bitcoins or ethereum. Dalio stated that cryptocurrency was a means of obtaining cash alternatives. “I view it as an alternative money in an environment where the value of cash money is depreciating in real terms,” said the billionaire.
Diversification Is Key
Dalio believes that buying bitcoin or ethereum can also be used as a diversification strategy. The billionaire hedge fund manager stated that cash investing is one of the most dangerous investments. Cash loses purchasing power, so the more cash one has, the less buying power that cash will have. He urged investors to 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.”
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Dalio stresses the need to diversify investors portfolios. This is why he did crypto investing, although it’s still only a part of his 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.”
The billionaire concluded by saying that cash is a “problematic asset.” Therefore, diversification out of this asset is important. “And that diversification should be also international diversification from countries, not just asset classes, in order to have a truly well-diversified portfolio,” Dalio added.
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