Bridgewater's Ray Dalio Softens Stance on Bitcoin, Says It Has Place in Investors' Portfolios

The founder of the world's largest hedge fund says bitcoin can form part of a diversified portfolio, though he may still prefer gold.

AccessTimeIconDec 9, 2020 at 8:54 a.m. UTC
Updated May 9, 2023 at 3:14 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Ray Dalio, the founder of the world's largest hedge fund, Bridgewater Associates, has offered a more positive stance on bitcoin than in comments that made headlines last month.

In a Reddit Ask Me Anything (AMA) on Tuesday, Dalio said he thought bitcoin and other cryptocurrencies had "established themselves" over the last 10 years and were interesting "gold-like asset alternatives."

  • How NEAR Enables Multichain Access From One Account
    00:56
    How NEAR Enables Multichain Access From One Account
  • Why the NEAR foundation Chose Eigenlayer as a Security Partner
    00:54
    Why the NEAR foundation Chose Eigenlayer as a Security Partner
  • Judge Kaplan Had 'No Love' for Sam Bankman-Fried, Legal Expert Says
    07:08
    Judge Kaplan Had 'No Love' for Sam Bankman-Fried, Legal Expert Says
  • How Bitcoin and Ether's Options Contracts Combined Expiry Could Spike Volatility
    01:11
    How Bitcoin and Ether's Options Contracts Combined Expiry Could Spike Volatility
  • The billionaire hedge-fund manager also noted that cryptocurrencies share similarities and differences to gold and various "limited-supply, mobile (unlike real estate) storeholds of wealth."

    Bitcoin "could serve as a diversifier to gold and other such storehold of wealth assets," said Dalio. "The main thing is to have some of these type of assets ... including stocks, in one's portfolio and to diversify among them."

    Dalio comments are a deviation from a month ago when he said there are three main problems with bitcoin and other cryptocurrencies: a lack of venues accepting digital assets as payment, price volatility and the potential for governments to "outlaw" them.

    During the AMA, Dalio also said, when comparing bitcoin to gold, he had a "strong preference" for assets central banks will want to hold and use to exchange value.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.