01.08.2021

World’s largest hedge fund thinks about investing in Bitcoin

Billionaire Ray Dalio, who owns the world’s largest hedge fund Bridgewater Associates, has made several positive arguments for the massive adoption of cryptocurrencies.

In a recently published address entitled “What I Think of Bitcoin,” Dalio acknowledged that the blockchain asset is an “unprecedented invention” that could change the world forever. Let’s talk about the situation in more detail.

To begin with, we note that there are enough rich people in the cryptocurrency industry. In particular, today the equivalent of a million dollars in Bitcoin can boast at least 78,960 people. A much smaller number of people have 10 million – there are now 6,311 of them.

At the same time, it is quite easy to understand the growing popularity of cryptocurrency among well-known funds. First of all, many popular companies openly invested in Bitcoin last year, including Grayscale, MicroStrategy, Square and others. In addition to this, cryptocurrencies have again entered the growth stage, which can both bring profit to its investors and be sure to attract the attention of fund clients.

Therefore, the trend will increase in the near future. Especially if the market continues to grow, and Elon Musk continues to keep the word “Bitcoin” in the description of his Twitter account with millions of followers.

Billionaires about Bitcoin

According to Dalio, the fact that many investors in the world are increasingly interested in Bitcoin for more than a decade in a row proves the “steadfastness” of the cryptocurrency. This is a tremendous achievement for a project distributed virtually unreservedly by an anonymous individual under the pseudonym Satoshi Nakamoto. Here is his line, in which he shares the details of what is happening. The statement is quoted by Decrypt.

My colleagues at Bridgewater and I are focusing on alternative assets for capital accumulation, and Bitcoin will not escape our attention.

In this case, the expert calls Bitcoin an alternative asset. Thus, he mentions the class of cryptocurrencies in general, which have not yet become a full-fledged investment tool on the part of most large companies in the world. Moreover, every month there are more and more of them.

The manager of the largest hedge fund in the world has come a long way after saying that Bitcoin is supposedly “very unstable” and unsuitable as a store of capital. Recall that last year, Dalio said that governments are likely to outlaw cryptocurrency. And he is not the only one who has expressed such an opinion. This week, former Goldman Sachs CEO Lloyd Blankfein noted that regulators are likely preparing for total control of BTC, which sounds like an argument from someone who does not fully understand the principle of decentralization.

However, now the billionaire’s point of view is completely centered around the future prospects of Bitcoin. It is possible that at the suggestion of Dalio, Bridgewater could start investing in BTC on an ongoing basis. However, he also added that he is worried about the danger of hacker attacks in the world of cryptocurrencies. The entrepreneur continues.

It would be naive to assume that digital assets cannot be hacked. Such risks exist and must be taken into account.

And indeed it is. Cryptocurrency storage is a complex topic that is not easy for beginners to deal with. This is primarily due to the abundance of scammers who are trying to steal other people’s coins.

By the way, Dalio is not the only well-known financier who thinks Bitcoin is too undervalued. A similar view is also shared by Eric Peters, chief executive of One River Asset Management. Here is one of his quotes from a recent Bloomberg interview.

Look at digital assets, they are grossly undervalued compared to some of the other valuable investments. That’s what inspires us – it’s an undervalued asset for this macroeconomic backdrop.

In other words, in the eyes of Wall Street investors, crypto remains a relatively small industry, which means it has room to grow. In such an environment, many hedge fund executives may decide to develop new investment strategies that rely on Bitcoin and other cryptocurrencies, which will only push BTC and alts to become more popular and in demand.

We believe that such statements by some of the most famous investors in the world will only benefit cryptocurrencies. In addition, thanks to them, it becomes obvious how much the reputation of blockchain assets has changed since the last stage of the growth of the cryptocurrency market in 2017. Now these are serious products that can change the world – especially when you consider the field of decentralized finance. And analysts of the world’s top companies are increasingly convinced of this.

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