Hedge fund billionaire Ray Dalio ‘doesn’t think much of Bitcoin’ but still holds ‘some’

US investor Ray Dalio said he has some Bitcoin (BTC) but is not a fan – instead he prefers gold.

Not a fan of Bitcoin

Sharing his thoughts with former model-turned-podcaster Chris Williamson, Dalio said that while he prefers gold, Bitcoin still offers things the metal can’t, such as transaction tracking and “not being liked by the government.”

At the same time, he questioned why Bitcoin, with a smaller market capitalization than Microsoft, is getting more attention – admitting: “Who knows, maybe there’s an element of it that I don’t understand.”

“The size is about 30% the size of Microsoft, and Microsoft is one stock among many stocks. [But] it has brought a lot more attention.”

Explaining his preference for gold over Bitcoin, the famous investor behind the dollar and euro said gold is the third highest reserve asset among central banks – adding that the yellow metal is timeless and universal.

Dalio, who is a billionaire and founder of the hedge fund Bridgewater Associates, stated that he has “a little bit” of Bitcoin. However, given its extreme volatility, he intentionally keeps his BTC allocation low to limit his downside exposure.

Dalio, who supports a sensible investment strategy, said: “I don’t believe much in Bitcoin.”

Mind-blowing?

Williamson offered his view by saying that being a crypto investor comes at the expense of mental well-being. He interpreted Dalio’s preference for gold as a bias towards “less rational forms of investment.”

“There’s a price you pay because of the volatility. But the price you pay is with your own sanity.”

Dalio agreed with the assessment and said he has seen people become very rich on crypto, but also some who went broke because of it.

Dalio was asked how he could cope with the unpredictable world we live in. The famous investor pointed out that in depressions and war, most people stay employed and alive/uninjured – and asks people to keep things in perspective. .

He also recommended people to be in places of goodness, harmony and beauty, such as being in nature.

When pressed about his inability to disconnect from the chaos and constant bad news — especially negative economic news, Dalio claimed that it helps to unwind in nature and turn off the TV — adding that friends and family are much more important than money.