Billionaire Ray Dalio Feels Crypto is Getting too Much Attention
Hedge fund manager and investor Ray Dalio thinks crypto is getting too much attention. The billionaire said this in an interview with David Rubenstein. According to him, crypto accounts for a tiny portion of his portfolio.
Crypto is Increasingly Drawing Interests of Institutions and Regulators
For several years, Dalio was a vocal crypto skeptic. But he announced in May last year that he owned Bitcoin. Despite owning crypto, he hasn’t been much of a vocal supporter. He once predicted that the government could destroy Bitcoin if it became too successful.
His new statements come in the light of interest in crypto from all quarters. Several financial authorities and top government executives have mentioned the need to regulate crypto. Even the International Monetary Fund warned that crypto could affect the whole financial system.
This warning came due to the correlation between the price action of Cryptocurrencies and US stocks. Since the rumors about the Federal Reserve adopting a hawkish stance surfaced, crypto and the tech-dominated Nasdaq Index have had similar trading curves.
The Bridgewater Associates chief believes that other assets will soon follow as the interest rates rise.
Ray Dalio’s Previous Crypto Opinions
But Ray Dalio doesn’t believe crypto should be getting all the hype and attention. Despite the massive rise in market cap in recent years, crypto still accounts for only a fraction of the global financial markets. This shows that the interest in crypto might be unnecessary.
This isn’t the first time the billionaire will express an opinion about crypto. He recently stated on Investors Podcast that one should only commit a tiny portion of their portfolio to crypto. He claimed that committing between 1% to 2% of the portfolio to Bitcoin is reasonable.
He also said that Bitcoin is unlikely to ever reach $1 million. Unlike many crypto investors who see it as a potential replacement for gold as a store of value, Ray Dalio doesn’t. He believes that having been in existence for thousands of years, gold has proven itself as a store of value. Thus, Bitcoin will find it difficult to supplant it.