Ray Dalio, the billionaire founder of Bridgewater Associates said that too much attention is given to cryptocurrencies, despite their volatility. Dalio, who said that he holds a small proportion of digital currencies said that for a hedge fund manager such as he, is careful in his involvement with digital assets, adding that the way that they are structured, that it is easy to track them.
Evolving Concept of Money
Dalio talked about cryptocurrencies in an interview with David Rubenstein. He said that it is time for the world to adapt to different kinds of money and highlighted that there would be initial opposition to inventions such as Bitcoin. This, he said, would lead to many governments banning cryptocurrencies.
Dalio runs the world’s largest hedge funds. This is why people actually pay attention to what he says. He maintained that the reason why his fund has not made cryptocurrencies a large part of their portfolio is because they are designed to be easily tracked.
“I wanted to diversify but it’s a very vulnerable incident because they can track who is operating on it. It can be tracked.”
He maintained that the attention given to Bitcoin is way too much compared to its size, even though he believes that it is a new form of money.
Some Limitations To Bitcoin Use
Bitcoin has severally been described as a form of money and as a means to store value. However, the spread of the currency in terms of adoption has severely limited its use. Most people cannot yet buy their groceries with the digital currency. Another limitation is its volatility which means that its value can change rapidly, sometimes within short periods of time.
Dalio added that digital money is still evolving and that there will be many more forms that will make people question the concept of money as a means of storage of value.