This week the world is talking about the World Economic Forum (WEF) meeting in Davos, Switzerland, beginning May 22 and ending May 26. At the event, Ray Dalio, founder of Bridgewater Associates, spoke about today’s economy, the Federal Reserve, cash, and cryptocurrencies. Dalio noted that at the WEF conference, he believes blockchain is great, but said, “Let’s call it digital gold.”
Billionaire hedge fund manager Ray Dalio said that “there will be a supply and demand problem that will create a squeeze”
The first week of February, Bitcoin.com News reported on billionaire Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund. At the time, Dalio spoke about the future of money and said that investors will have crypto “outlawed, probably by different governments.” Today, Dalio is in Davos, Switzerland, with other government officials, economists, and financial heavyweights from around the world. The founder of Bridgewater Associates said in an interview with CNBC’s Andrew Ross Sorkin on the broadcast Squawk Box.
Once again, Dalio spoke about the future of money and the next monetary policy of the US central bank. Hedge fund executives believe that the Fed has no choice but to sell now. As an excerpt from Dalio’s interview states, “The Federal Reserve is selling, individuals are selling, foreigners are selling, and the U.S. government is selling because it has to close the deficit.” He added, “That means there will be a supply and demand problem, which will create a squeeze.”
Dalio’s outlook is bleak, and he is not the only one at the WEF meeting in Davos who believes the global economy faces multiple threats. Reuters reporter Dan Burns, reporting from the multi-day WEF meeting, stressed that certain threats, such as the war between Ukraine and Russia, food shortages, and the recent Chinese Covid-19 lockdown, “have no clear end” and are “amplifying the gloom.”German Vice Chancellor Robert Herbeck concurred, stating.
We have at least four crises, and they are intertwined. High inflation … An energy crisis… . food shortages, and the climate crisis. And we can’t solve our problems by focusing on just one of these crises.
Dario discusses bitcoin’s “small point relative to gold”
The founder of Bridgewater Associates explained at the WEF event that cash is garbage for now.” Of course, cash is still garbage.” Dalio told a CNBC reporter. “I am asking you, do you know how fast cash is losing its purchasing power?” The hedge fund executive asked. Mr. Dalio further explained and elaborated on what he meant when he said cash is garbage.
Thus, when I say “cash is garbage,” I mean all currencies in relation to the euro and the yen, Dalio stressed. ‘All currencies, like those of the 1930s, become currencies that go down in relation to goods and services.’ In addition to speaking about currency and cash at Davos, Dalio spoke about cryptocurrencies being a form of digital gold.
“I think blockchain is great,” Dario told the host of CNBC’s broadcast Squawk Box, “especially cryptocurrency.” But let’s call it digital gold. I think digital gold, which would be like bitcoin, would be something with a small spot relative to gold and other assets, perhaps in the interest of diversification, of finding alternatives to gold.
It has been known since May 2021 that Dario had personally invested in Bitcoin (BTC), but four sourcestold crypto reporters Danny Nelson and Ian Allison in March 2021 that Bridgewater Associates was “in the digital asset a small chunk of their funds deployed directly,” explainingthat they would use “a small chunk of their funds deployed directly. That same month, the billionaire investor and hedge fund manager told the world that he believes the government may apply a “more shocking tax on cryptocurrencies than expected.”
What do you think about Ray Dalio’s opinion from Davos? What do you think about the hedge fund manager’s thoughts on cryptocurrencies? Let us know what you think about this subject in the comments section below.
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