In these days of the big world economic forum (WEF) will take place in Swiss Davos. A really tranquil 10,000 inhabitants municipality, which is now the venue for the ‘global Elite’. It is not only the world economy, climate change or the global financial and monetary policy. It is also a matter of technological progress, and thus essential also to the theme of the Blockchain. A spokesman for the self-confessed Bitcoin Pessimist Ray Dalio was.
We want to find out in this article, what keeps Dalio of Bitcoin and how he justified his rejection. We also want to see why we enthusiasts have than Bitcoin, maybe it is one or the other thing in Common with Ray Dalio. A Lot Of Fun!
Bitcoin & its volatility = bad Store of Value?
First of all: the basis of the article, the CNBC Interview between Dalio and three other journalists of the global financial and news portal. The Interview takes approximately 5 minutes and is stored as a source.
In the Interview with the four experts to philosophize about the future of money, Bitcoin, Gold, the global economic Situation and the consequences of a potentially forthcoming recession. For all readers, the just ask who Ray Dalio is: Dalio is one of the most well-known US investors and hedge Fund managers. He is also the founder of the investment firm Bridgewater Associates. In this respect, you should pay – even if you don’t like to share his opinion – his words-at least belonging to. So, what Dalio is saying?
Ray Dalio hold nothing of Bitcoin.
Let’s start with the “Bitcoin destruction”. Dalio speaks in an Interview about Bitcoin and Gold. Here, he says that BTC didn’t take it managed in the past, the functions of money. This was mainly due to the high volatility, the Bitcoin to makes from his eyes – a poor Store of Value. If Bitcoin wanted to take over in the future, so the functions of money and, indeed, the claim of an “Electronic Cash system” I had to get it, especially the Problem of volatility in the handle. On the specific question of whether people should buy Bitcoin, just like Gold, he said:
There are two main purposes of money: as a Medium of Exchange and as a Store of Value. Bitcoin meets in its current stage, neither of the two functions. It is easy to volatile.
Suitable to his argument, he sees more potential in the Facebook Coin Libra. Because after Dalios view much (or anything goes?) to the volatility. Libra could be reached due to the enormous reach of Facebook and its role as a Stablecoin many people, so Dalio.
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Cash is trash – Clear words of hedge Fund Manager
Dalio likes to evaluate the potential of Bitcoin now differently than we do, it is likely – that is his right. Interesting is his evaluation to normal Fiat money is, however. Here, Dalio speaks pretty clear words. So he said:
Cash is trash – Fiat money is garbage.
This reasoning is often taken up by Bitcoin enthusiasts, in order to demonstrate that BTC is in compare to the global monetary policies inflationary, and constantly reproduced can be. Dalio suggests in the Interview that governments have the monopoly to print money. From this monopoly, the current “glut of money” and the consequent devaluation of Fiat is a result of money.
Last, but not least, there is the issue of the current market situation. People should enter the market or leave it alone? For this purpose, Dalio said that the people should not be afraid. Rather, a “well-diversified Portfolio to help”.
Part of this could be in the Rest of the Bitcoin.
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Ray Dalio currencies right with his statements on Bitcoin and Fiat? How would you rate the estimates of the hedge Fund Manager?
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