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Ray Dalio, Invests In Ether, Praising Cryptocurrency While Labelling Cash The “Worst Investment”

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Hedge fund legend Ray Dalio has praised cryptocurrency, confirming that he owns ether in addition to bitcoin and claiming that cash is the “worst investment.”

For years, the billionaire investor was sceptical of the bitcoin “bubble,” but he changed his mind this year and purchased the leading cryptocurrency.

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In a Yahoo Finance interview on Thursday, Dalio revealed that he has added ether to his portfolio, but that he does not own a large amount of bitcoin or ethereum’s native token.

“I’m not going to give the precise amount of bitcoin or – but I do own some ethereum, as well,” he told Andy Serwer. “I don’t own a lot of it.”

Dalio, the founder and co-chief investment officer of Bridgewater Associates, the world’s largest hedge fund, told Yahoo that he believes in diversification and that cryptocurrencies make up “a relatively small part” of his portfolio.

He went into detail about why he believes digital assets are a good investment.

“I view it as an alternative money in an environment where the value of cash money is depreciating in real terms,” he said.

“And I think it’s very impressive that for the last 10-11 years, that programming has still held up. It hasn’t been hacked and so on. And it has an adoption rate.”

Bitcoin’s acceptance in the financial mainstream is increasing. Meanwhile, the promise of decentralised finance, or DeFi, has boosted interest in ethereum by removing traditional banks and other middlemen from transactions.

In November, cryptocurrencies hit new highs as institutional money began to pour into the digital token economy.

According to TradingView data, bitcoin and ether have risen 62 percent and 420 percent this year, respectively. However, they have recently retreated, with bitcoin down 3.5 percent and ether down 5.4 percent on Friday.

Crypto critics like Howard Marks, as well as Dalio himself, have been silenced or swayed by these developments.

The billionaire, who has previously compared cash to trash, has reiterated his disdain for fiat currency, calling it the worst investment. The debasement of fiat money, he argued, has made assets like bitcoin appear more inflation-resistant as a result of governments’ unprecedented fiscal stimulus to help economies through the pandemic.

“Cash – which most investors think is the safest investment – is, I think, the worst investment,” Dalio said in the interview.