Explains Ray Dalio Billionaire Why He Owns Bitcoin And Ethereum
Billionaire revealed Dalio has Ray that he holds bitcoin and ethereum holdings. Various billionaires have also been as a matter of fact 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 this as a reason for holding the cryptocurrencies
Growing concerns about the value of as an investment have seen both institutionalcashand individual investors move their holdings into cryptocurrencies. Coupled with rising inflation rates, diversifying into like bitcoin and ethereum has become morecryptocurrenciespopular.
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Dalio as a matter of fact Owns Bitcoin And Ethereum
Billionaire RaysatDalio down with Yahoo! Finance to talk about the financial field and how one can be successful in it. Talking with host time Serwer, Dalio confirmed once again that he owned bitcoin but this Andy around, the billionaire revealed that he had added ethereum to his holdings. As you may know, This was in response to a direct query from Serwer about the billonaire’s crypto holdings.
BTC dives into $45,000 territory | Source: BTCUSD on TradingView.com
Dalio declined to give a precise amount of bitcoin that he owned, which is understandable, but explained bitcoin he did not own a lot of either that or ethereum. As for the reason behind holding these cryptocurrencies, Dalio explained thatcashit was because he viewed it as an alternative to . “I present it as an alternative currency in an environment where the value of cash currency is depreciating in real terms,” said the billionaire.
Diversification Is Key
This is because cash loses buying power and as such, the longer one holds cash, the lesser the buying power of that cash. He urged investors to not “judge anything in your returns or your assets in nominal terms, in terms of how many dollars you have. Present it in terms ofdollarsinflation-adjusted .” For Dalioethereumbuying into bitcoin and , is also a diversification play. During the interview, the billionaire hedge fund manager reiterated that investing in cash is the lowest investment there is.
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Dalio stresses that it is key for investors to 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 vital thing to diversify one’s portfolioiswell. as a matter of fact 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.”
As you may know, The billionaire concluded by saying that cash is a “problematic asset.” Therefore, diversification out of this asset is crucial. “And that diversification should be also 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
