Hedgefund Billionaire, Ray Dalio disclosed at a conference yesterday that he owns “some” bitcoin and called the cryptocurrency a better inflation hedge than bonds—marking a notable pivot for the longtime bitcoin skeptic as the market rebounds from a $1.3 trillion crash after climbing 10-fold and adding nearly $2.4 trillion in value over the past year.
“Bitcoin’s greatest risk is its success,” he said.
And if it succeeds, “one of the great things, I think, as a worry is the government having the capacity to control bitcoin, or the digital currencies. They know where they are, and they know what’s going on,” he said.
“The more we create savings in [bitcoin], the more you might say, ‘I’d rather have bitcoin than the bond.’ Personally, I’d rather have bitcoin than a bond. And then the more that happens, then it goes into bitcoin and it doesn’t go into credit, then [governments] lose control of that.”
The hedge fund manager has previously called Bitcoin “one hell of an invention” and that he found it challenging to put a value on digital assets since investing in Bitcoin means recognizing the potential to lose about 80%.
Nonetheless, “the world is going to change at an incredibly fast pace,” Dalio said at the conference. “Whoever wins the technology race, wins it all, economically, and militarily. That’s what the next five years looks like.”
Sources: Coindesk, Forbes.