Ray Dalio warns 'money as we know it is in jeopardy' and favors an inflation-linked cryptocurrency over bitcoin
- Bridgewater Associates founder Ray Dalio warned of a looming currency crisis.
- "We are in a world where money as we know it is in jeopardy," Dalio told CNBC. "We are printing too much, and it's not just the United States."
Bridgewater Associates founder Ray Dalio warned Thursday of a looming currency crisis and that an inflation-linked cryptocurrency would be safer than bitcoin.
In an interview with CNBC, he asserted that the largest cryptocurrency by market capitalization "has no relation to anything" and denounced opinions that bitcoin is a safe store of value.
"It's a tiny thing that gets disproportionate attention," Dalio said. "It's not going to be an effective money. It's not an effective store holder of wealth. It's not an effective medium of exchange."
But Dalio pointed to fiat currencies that dominate foreign exchange reserves as the real cause for concern, in particular the US dollar, euro and Japanese yen.
"We are in a world in which money as we know it is in jeopardy," Dalio said. "We are printing too much, and it's not just the United States.
He also noted China's push to conduct trade in the yuan and promote its digital renminbi will make them more widely used.
President Xi Jinping recently visited the Middle East to tout the yuan in oil deals, threatening the US dollar's status as the top currency in commodities trade.
"If Saudi Arabia sells oil in renminbi and then buys things from China in renminbi, when they get it they're going to hold more renminbi - it's going to be a higher percentage of their [reserves]," Dalio said. "The question over the next number of years is really what is money, not just as a medium of exchange but as a store holder of wealth."
While bitcoin has been touted as the future of currency, he said it's too unstable. And stablecoins, which have been billed as safer than bitcoin, are basically fiat currencies too, he added.
What would be best is an inflation-linked coin that can ensure buying power, Dalio said.
"If you created a coin that says 'OK this is buying power that I know I can save in and put my money in over a period of time and transact in,' then I think that would be a good coin," he said. "So I think you're going to see the development of coins that you haven't seen that probably will end up being attractive, viable coins. I don't think bitcoin is it."
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