Bridgewater Associates founder Ray Dalio made a comment disparaging fiat money and the stock market. To him, these assets mean trash in the financial market.
However, the co-head of investments and board member of Bridgewater Associates praised bitcoin. Ray Dalio states that blockchain technology may be responsible for creating digital gold.
The executive talked about the financial market in a recent interview with CNBC. He explains that money is losing its purchasing power while other assets go the opposite way, up in value.
“When I say ‘cash is trash,’ what I mean is that all currencies in relation to the euro and the yen, all of those currencies—like in the 1930s—will be currencies that will go down in relationship to goods and services.”
Bitcoin and digital gold
Ray Dalio was adamant in expressing his concern about fiat currencies. However, when he called money trash, the stock market was categorized as something even worse.
Thus, the founder of Bridgewater Associates stated that “stocks are more despicable” than cash. Therefore, both assets represent junk to the executive.
On the other hand, bitcoin has earned praise from Ray Dalio, for representing a new asset in the financial market. As such, he advises that blockchain technology can create a digital gold and cites the crypto asset as an example.
The issuance of limitless money has been put forward by Ray Dalio as one of the reasons for the classification of fiat currency as junk. In his analysis, the founder of Bridgewater Associates concludes that a digital currency could be an alternative even to gold.
“I think blockchain is great. But let’s call it digital gold. I think a digital gold, which would be a bitcoin-type thing, is something that – probably in the interest of diversification of finding an alternative to gold – has some advantage relative to gold and then relative to other assets.”