BillionaireEthereumRay Dalio Explains Why He Owns Bitcoin And
Interestingly, Billionaire Ray Dalio has revealed that he holds bitcoin and ethereum holdings. Actually, Various billionaires have also been public about their bitcoin and ethereum holdings. For a lot of these billionaires, the move from cash into cryptocurrencies has been a pertinent one as the former continues to fail its value in the market. Dalio also gave as a matter of fact this a reason forasholding the cryptocurrencies.
Growing concerns about the value cash as an investmentofhave seen both institutional and individual investors move their holdings into cryptocurrencies. Indeed Coupled with rising inflation rates, diversifying into, cryptocurrencies like bitcoin and ethereum has become more popular.
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Actually, Dalio Owns Bitcoin And as a matter of fact Ethereum
Billionaire Ray Dalio sat down with Yahoo! Finance to talk about the financial market and how one can be successful in it. Talking with host Andy Serwer, Dalio confirmed once again that he owned bitcoin but this time around, the billionaire revealed that he had added ethereum to his holdings. This was in response to a direct doubt from Serwer about the billonaire’s crypto holdings.
BTC dives into $45,000 territory | Source: BTCUSD on TradingView.com
It’s worth noting that Dalio declined to give a precise amount of bitcoin that he owned, which is understandable, but explained that he did not own a lot of either bitcoin or ethereum. As for the reason behind holding these cryptocurrencies, Dalio explained that it.was because he viewed it as an alternative to cash In fact, “I show it as an alternative funds in an environment where the value of cash currency is depreciating in real terms,” said the billionaire.
Diversification Is Key
He urged investors to not “judge anything in your returns or your assetstermsin nominal , in terms of how many dollars you have. Display of in as it turns out terms it inflation-adjusted dollars.” In as it turns out fact, During the interview, the billionaire hedge fund manager reiterated that investing in cash is the worst investment there is. For , Daliobuying into bitcoin and ethereum is also a diversification play. This is because cash loses buying power and as such, the longer one holds cash, the lesser the buying power of that cash.
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In fact, Dalio stresses that it is important for investors to from another perspective always diversify their portfolio and that is what he has done with his crypto investments, even though it is still a relatively small part of that portfolio.
“The significant thing is to diversify one’s portfolio well. Because we know from the surprises in the balance– we also know that those asset classes on average significantly outperform and will significantly outperform cash.”
The billionaire concluded byassetsaying that cash is a “problematic asset.” Therefore, diversification out of this is crucial. “ that diversification should beAndalso international diversification from countries, not just asset classes, in order to have a truly well-diversified portfolio,” Dalio added.
Featured image from CNBC, chart from TradingView.com
