icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Ray Dalio calls bitcoin ‘one hell of an invention,’ but a huge risk for investors

Ray Dalio calls bitcoin ‘one hell of an invention,’ but a huge risk for investors
Cryptocurrencies are offering traders protection against the debasement of fiat money, but pose a serious risk of losing the bulk of the investment, Ray Dalio, the founder of the world’s largest hedge fund believes.

“To have invented a new type of money via a system that is programmed into a computer and that has worked for around 10 years and is rapidly gaining popularity as both a type of money and a storehold of wealth is an amazing accomplishment,” Bridgewater Associates boss wrote in a note to clients published on the company’s website.

The American billionaire added that the entire world of big investments currently boasts few alternative gold-like assets, and said the need for such assets is rising dramatically.

Also on rt.com Why did bitcoin suddenly erase all of this year’s gains? RT’s Boom Bust has the answer

However, Dalio highlighted the double-edged sword of cryptocurrencies, as bitcoin is able to both make an investor “very rich” and yet “disrupt the existing monetary system” at the same time. Moreover, he said, digital assets are vulnerable to being hacked. 

According to the veteran investor, who calls bitcoin a “long-duration option on a highly unknown future,” investing in cryptocurrency means recognizing the potential to sustain losses of around 80 percent.

Also on rt.com Major Russian bank gets ready to launch its own cryptocurrency by spring

Dalio also noted that, since a limited number of bitcoins can be mined, there is nothing to stop new coins from being created.

“I assume that better ones will come along and displace this one,” he said.

The billionaire also said that the more restrictions are put on the usage of Bitcoin, the more chance “demand for it would plunge.”

“Rather than it being far-fetched that the government would invade the privacy or prevent the use of bitcoin and its competitors, it seems to me that the more successful it is, the more likely these possibilities would be,” Dalio said.

For more stories on economy & finance visit RT's business section

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.

Podcasts