Note that this is not the first time Ray Dalio has commented on cryptocurrency developments. In particular, in December 2021, he acknowledged that Bitcoin does have fundamental value, and the behaviour of coins the day before led him to move some of his capital specifically into digital assets.

At that time, he also said that BTC could be considered an analogue to gold - but only for the younger generation. Read more about the billionaire's point of view in a separate article.


What experts think about Bitcoin

The billionaire said that the Bitcoin network has never been hacked, cryptocurrencies have no better competitor, and the rate of adoption of BTC suggests that it could “encroach” on a significant share of gold’s market capitalization. Here’s an investor’s perspective, in which he shares his view of the situation. The speech is cited by Cointelegraph.

Bitcoin is now valued at around one trillion dollars, while gold, which is not stored in central banks or used for jewellery, is valued at around $5 trillion. I think over time Bitcoin as an asset to hedge against inflation will become even more popular.


Hedging refers to reducing risk - in this case from the impact of inflation. In general, Bitcoin is already outperforming gold in terms of profitability, and not for the first time. In particular, in 2021, BTC has grown by 60 percent, while the world's main precious metal has fallen by 4 percent. Obviously, after such data, there won't be as many willing to invest in gold as there are digital asset lovers.


Shark Tank host Kevin O’Leary

True, Bitcoin itself may have other more dangerous “competitors”. That’s what millionaire and star of the financial TV show Shark Tank Kevin O’Leary believes. In a recent interview cited by journalists, O’Leary said that the field of unique NFT tokens could attract more capital because of its ability to tokenise almost anything.

Over the next few years, you’ll see a lot of changes in terms of creating authentication mechanisms, insurance policies and real estate document management online, which will make NFT a much larger and more fluid market than Bitcoin itself.

In other words, the entrepreneur believes that NFT's fields of application will soon extend beyond art and gaming. Since almost anything can be tied to tokens, the field has incredible potential that will eventually be realized anyway.

However, O’Leary is in no hurry to bet on “one part of this equation”, meaning he will invest in both NFT and Bitcoin. And that’s the right strategy – investing in Bitcoin helps reduce risk relative to the rest of the industry, as BTC is still the most trusted and conservative cryptocurrency. However, compared to many altcoins, BTC’s returns sometimes seem ridiculous.


We believe that every investor should decide for himself how much of his portfolio is worth transferring into digital assets. First of all, it should be based on knowledge and understanding of the sector, not on hype around it. In addition, it is important to remember the golden rule of investing only what you can afford to lose in crypto. That way, temporary market hiccups won't create too many problems.


What do you think about it? Share your opinion in our millionaires’ cryptochat. There we will discuss other important developments related to the world of decentralisation and blockchain.