Rajarshi Mitra
Independent Analyst
- Ray Dalio said that Bitcoin is too volatile to be a store of wealth, at present. Instead, he suggests a small allocation in gold.
- He also noted that currently, “cash is trash” and that investors must look for a well-diversified portfolio.
The founder of investment firm Bridgewater Associates, Ray Dalio, has warned people not to get involved with speculative currencies like Bitcoin in 2020. Appearing on CNBC’s “Squawk Box” at the World Economic Forum in Davos, Switzerland, Dalio said:
There’s two purposes of money, a medium of exchange and a store hold of wealth, and Bitcoin is not effective in either of those cases now.
He believes that Bitcoin is too volatile to be a store of wealth currently. Instead, he suggests a small allocation in gold.
Because of the volatility, you can’t go next to it. Someday, you know, I would say Libra or something with more stable value has got more potential. But also, who is going to do the buying? Central bankers and others? What are they going to hold as reserves?
What has been tried and true? Are they going to hold digital Bitcoin? They are going to hold gold. That is a reserve currency, and it has been a reserve currency for 1,000 years… A bit of gold is a diversifier, and that’s the advice I can give.
He also noted that currently, “cash is trash” and that investors must look for a well-diversified portfolio.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
TRUMP token leads $906 million in unlocks this week with over $330 million release
According to Tokenomist, 15 altcoins will unlock more than $5 million each in the next 7 days. Wu Blockchain data shows that the total unlocked value exceeds $906 million, of which the TRUMP token will unlock more than $330 million.
Why Mantra token’s dramatic 90% crash wiped out $5.2B market share
Mantra price hovered at $0.83 during the Asian session on Monday, following a massive 90% crash from $6.33 on Sunday. The crash wiped out $5.2 billion in the token’s market capitalization, quickly drawing comparisons to the infamous collapse of Terra LUNA and FTX in 2022.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC is on the verge of a breakout while ETH and XRP stabilize
Bitcoin price approaches its key resistance level at $85,000 on Monday; a breakout indicates a bullish trend ahead. Ethereum and Ripple found support around their key levels last week, suggesting a recovery is in the cards.
Bitcoin and crypto market sees recovery as Fed official says agency ready to stabilize market if necessary
Bitcoin rallied 5% on Friday, trading just below $84,000 following Susan Collins, head of the Boston Federal Reserve (Fed), hinting that the agency could stabilize markets with "various tools" if needed.
Bitcoin Weekly Forecast: Market uncertainty lingers, Trump’s 90-day tariff pause sparks modest recovery
Bitcoin (BTC) price extends recovery to around $82,500 on Friday after dumping to a new year-to-date low of $74,508 to start the week. Market uncertainty remains high, leading to a massive shakeout, with total liquidations hitting $2.18 billion across crypto markets.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.