World Economic Forum (WEF), a meeting held in Davos Switzerland on May 22, and ending on May 26, has been the talk of the entire world. At the event, Bridgewater Associates founder Ray Dalio spoke about today’s economy, the Federal Reserve, cash, and cryptocurrencies. Dalio noted at the WEF conference that he believes blockchain is great, but says “let’s call it a digital gold.”
Billionaire Hedge Fund Manager Ray Dalio Says ‘There’s Going to Be a Supply and Demand Problem That Produces a Squeeze’
During the first week of February, Bitcoin.com News reported on the billionaire Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates. At the time, Dalio spoke about the future of money and the investor said that crypto will be “outlawed, probably by different governments.” Currently, Dalio is in Davos, Switzerland, with the rest of the world’s government officials, economists, and financial big-wigs. The Bridgewater Associates founder spoke in an interview with CNBC’s Andrew Ross Sorkin on the broadcast Squawk Box.
Once again, Dalio spoke on the future of money and the U.S. central bank’s next monetary policies. According to the hedge fund manager, there is nothing more for the Fed than selling. “The Federal Reserve is going to sell, individuals are selling, foreigners are selling, and the U.S. government is selling because it has to fund its deficit,” an excerpt from Dalio’s interview notes. “So there’s going to be a supply/demand problem, that means that it produces a squeeze,” he added.
Dalio’s outlook is gloomy and he’s not the only one in Davos at the WEF meeting that believes the global economy faces multiple threats. Reporting from the WEF multi-day conference, Reuters reporter Dan Burns highlighted that specific threats like the Ukraine-Russia war, food shortages, and the recent Covid-19 lockdowns in China have “no clear end” and “have compounded the gloom.” Germany’s vice-chancellor Robert Habeck agrees and said:
There are at most four major crises that we face, all interconnected. We have high inflation … we have an energy crisis… we have food poverty, and we have a climate crisis. And we can’t solve the problems if we concentrate on only one of the crises.
Dalio Discusses Bitcoin’s ‘Little Spot Relative to Gold’
Bridgewater Associates founder, Dalio said at the WEF that cash is currently trash. “Of course, cash is still trash,” Dalio told the CNBC reporter. “I’m asking you, do you know how fast you’re losing buying power in cash?” the hedge fund executive asked. Dalio went on to explain that cash is garbage and he meant it.
“When I say cash is trash, what I mean is all currencies in [relation] to the euro, in relationship to the yen,” Dalio stressed. “All of those currencies like in the 1930s will be currencies that will go down in [relation] to goods and services.” In addition to speaking about currencies and cash in Davos, Dalio talked about cryptocurriences being a form of digital gold.
“Cryptocurrencies in particular – I think blockchain’s great,” Dalio said to the host of CNBC’s broadcast Squawk Box. “But let’s call it a digital gold. I think a digital gold, which would be a bitcoin kind of thing, is something that—probably in the interest of diversification of finding an alternative to gold—has a little spot relative to gold and then relative to other assets.”
While its been known since May 2021 that Dalio had personally invested in bitcoin (BTC), four sources explained to the crypto reporters Danny Nelson and Ian Allison in March 2021, that Bridgewater Associates would use a “small slug of their fund deployed directly into digital assets.” That same month, the billionaire investor and hedge fund manager told the world that he thinks governments may apply taxes to cryptocurrencies that “could be more shocking than expected.”
What do you think about Ray Dalio’s opinions from Davos? What do you think about the hedge fund manager’s thoughts about cryptocurrencies? Comment below and let us know how you feel about the subject.
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