Hedge fund giant Ray Dalio admitted to buying the leading altcoin Ethereum (ETH) in addition to Bitcoin (BTC), saying that cash may just be the ‘worst investment’. That’s why Ray Dalio describes cryptocurrencies as ‘influential’. For details cryptocoin.com keep reading.
Ray Dalio explains why he got it from the leading atcoin project
The billionaire investor has been skeptical of the Bitcoin ‘bubble’ for years, but this year a change of mind led him to buy the leading cryptocurrency. On Thursday, in a Yahoo Finance interview, Ray Dalio announced that he has added altcoin project Ethereum to his portfolio, but said that he does not hold large amounts of BTC or ETH:
I will not give an exact amount. But I have Bitcoin and some Ethereum. But not much.
Ray Dalio said he is a big proponent of diversification, with cryptocurrencies making up a “relatively small portion” of his portfolio. The billionaire investor explains why he thinks digital assets are a good investment:
In an environment where the value of cash is depreciating in real terms, I see it as an alternative money. And I think it’s very impressive that this programming is still going on in the last 10-11 years. Not attacked etc. And there is an adoption rate.
How to make a good portfolio diversification?
“Don’t look at how many dollars you have in your returns or assets in nominal terms and don’t evaluate,” says Ray Dalio, who says that it should be looked at in dollars adjusted for inflation:
Seen this way, cash has lost 4% or 5% against inflation this year. Watch out for these, because I believe this will be the worst investment.
Describing cash as ‘a very bad asset’, Ray Dalio states that high inflation will reduce purchasing power:
Hold other diversified portfolio of assets. However, keep looking at it in real terms, not in nominal terms. For a truly well-diversified portfolio, there must be international diversification, not just asset classes, but also countries.
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