Founder of Bridgewater Associates Ray Dalio said, “I don’t think Bitcoin is it” when it comes to effective money.

The famed investor instead proposed an inflation-linked coin that would retain its purchasing without the wild volatility typical of the leading cryptocurrency.

Speaking to CNBC, Dalio said what Bitcoin “has accomplished” during its relatively short history is “quite amazing,” adding that, in his view, it does not correlate with other assets.

“I think it’s been quite amazing that for 12 years, what it has accomplished, but I think it has no relation to anything.”

He also said, “it’s a tiny thing that gets disproportionate attention,” backing up this point, he mentioned its market cap is a third of Microsoft’s. On top of this, many industries, including biotech, are much more appealing to him from an investment standpoint.

Dalio further shattered the idea that he is pro-Bitcoin by questioning its effectiveness as money, a store of value, and a medium of exchange. However, he acknowledged that the money system is broken.

“It’s not going to be an effective money; it’s not going to be an effective store hold of wealth, it’s not an effective medium of exchange. But we are in a world in which money as we know it is in jeopardy. We are printing too much.”

Hinting at a currency collapse, which he phrased as “things opening up in an evolutionary way,” Dalio foresees people scrambling to a type of safety.

When pressed if that “safety” was Bitcoin, Dalio was adamant that neither Bitcoin nor fiat-backed stablecoins would fit the bill.

“I think if you want a digital currency, you have to do something different. I don’t think that the stablecoins are good because then you’re getting a fiat currency again.

Instead, an inflation-linked coin would be a feasible alternative. Through an inflation-linked coin, people can secure their buying power. Whereas saving in Bitcoin is subject to wild volatility swings, said Dalio.

“If you created a coin that says, okay, this is buying power that I know I can save in and put my money in over a period of time, and I can transact in anywhere, I think that would be a good coin.”

Frax Price Index (FPI) is an example of an existing coin that derives its price by pegging to real-world consumer prices.

The post Ray Dalio gives his take on building a better Bitcoin appeared first on CryptoSlate.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

234 +