It should be noted that Ray Dalio mentioned the topic of cryptocurrencies in early January, and then his position was softer. At that time, the billionaire said that each investor should allocate about 1-2 percent of his portfolio to buying BTCs. In addition, Ray revealed three reasons for immediate investment in the first cryptocurrency. Read more about these in a separate article.


Risks and dangers of cryptocurrencies

A Bitcoin ban is possible, but fortunately the capitalisation of the crypto industry is already too big for any one country to be able to undermine the value of digital assets in the eyes of investors. Still, in Dalio’s eyes, ardent crypto fans are virtually no different from “gold bugs”, i.e. gold fans. Here is his rejoinder, in which the expert shares his view of the situation.

I think cryptocurrencies have been getting too much attention lately.

Billionaire Ray Dalio

As a reminder, "gold bugs" is a slang expression used to refer to investors who have too much faith in gold and investment instruments linked to the precious metal.

Dalio himself holds “few” cryptocurrencies in his investment portfolio. The billionaire is confident that the future global financial system will be filled with different types of money, that is, it is unlikely that the dominant form will be the U.S. dollar.

On the other hand Dalio is still concerned about the future, especially with regard to problems in the political sphere. Here’s one of his quotes published by the news outlet Decrypt

I think there is a real possibility in the 2024 elections that neither party will accept defeat in the electoral process. And that means that democracy or some sort of civil war may get a certain development.

In other words, in the eyes of the billionaire, the risks to crypto-investors lie everywhere. And that’s not good – Bitcoin has recently shown an increasing dependence on the largest stock index, the S&P500. And it will be one of the first to fall in the event of a crisis.

However, Bitcoin's current connection to the traditional world of finance doesn't mean it will continue to do so in a few years' time. Even now, cryptocurrencies are starting to bounce back more steadily than other areas.

Nevertheless, even among prominent US politicians there are quite a few Bitcoin fans. One of them is Rafael “Ted” Cruz, a Republican senator from Texas. According to his financial documents, Cruz invested between $15,000 and $50,000 in Bitcoin on January 25 through the brokerage firm River.

Cruz’s investment report

We can assume that so far the politician’s deal has been quite successful – on January 25, Bitcoin was trading at $36,000, but now its price is already hovering at almost $43,000. If Cruz hasn’t sold the coins, it means that in just a couple of weeks, his profit is already between $2.91 and $9.72 thousand.

Senator Ted Cruz

Following the lead of fellow Senator Cynthia Lummis of Wyoming, Cruz has spent much of the second half of the current market growth phase studying blockchain and crypto. His state has benefited from the influx of mining companies following China’s outright ban on the business. That said, Cruz himself has advocated accepting cryptocurrency payments in gift shops and vending machines in the US Capitol complex, and has also criticised the provisions of a recent bill that could severely “loosen the hands” of local financial regulators in controlling the crypto market.


We think the fact that big officials are investing in cryptocurrencies speaks volumes. It means that they believe in the continued growth of digital assets, and in this case, the billionaire's warnings are not stopping them. And it is definitely a positive sign for the prospects of the coin industry - especially in the current environment after the market has reached its local bottom.