World Economic Forum

Blockchain is Great, Let’s Name It Digital Gold, Billionaire Ray Dalio Says in DAVOS

The World Economic Forum (WEF) in Davos, Switzerland, which started on 22nd May and closed on 26th May 2022, has been the subject of discussion everywhere. One of the speakers, Ray Dalio, the founder of Bridgewater Associates, talked about the current economy, cash, Federal Reserve, and cryptos. He concluded by calling the community to rename the blockchain the “digital gold.”

Ray Dalio Says Demand and Supply Problem Will Result in a Squeeze 

In the first week of February 2022, Billionaire Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, talked about the future of money and pointed out crypto assets would be outlawed. In WEF in Davos, Dalio was there too, and again, talked about the U.S. monetary policies and the future of money

The respected executive holds the view that the U.S. Central Bank is left with no other option apart from selling. “The Federal Reserve is going to sell, individuals are selling, foreigners are selling, and the U.S. government is selling because it has to fund its deficit,” said Dalio. “So there’s going to be a supply/demand problem, that means that it produces a squeeze,” emphasized the Bridgewater Associates CEO. 

Dalio’s view appears gloomy, but he is not the only person in the Davos forum believing that the economy faces a myriad of threats. Dan Burns, a Reuters’ reporter, highlighted additional specific threats, such as food shortages, the Russia-Ukraine war, and the recent COVID-19 pandemic, which have no clear end. 

The argument by Burns was supported by Robert Habeck, Germany’s vice-chancellor. “We have at least four crises, which are interwoven. We have high inflation … we have an energy crisis… we have food poverty, and we have a climate crisis. And we can’t solve the problems if we concentrate on only one of the crises,” said Habeck. 

Name Blockchain Gold, Dalio Urges

The Bridgewater Associates founder further pointed out that cash is trash. “Of course, cash is still trash,” Dalio said. “I am asking you, do you know how fast you’re losing buying power in cash?” Dalio elaborated by pointing out what he meant by saying that cash is trash. 

“When I say cash is trash, what I mean is all currencies in [relation] to the euro, in relationship to the yen,” emphasized Dalio. He added that, like in the 1930s, all those currencies would go down to services and goods. Therefore, he pointed out that cryptocurrencies are forms of digital gold. 

“Cryptocurrencies in particular – I think blockchain’s great,” said Dalio. He added that that is not enough, and we should call it “digital gold, which would be a Bitcoin kind of thing.” 

Since 2012, Dalio has invested in Bitcoin, with some reports indicating that Bridgewater Associates would use some small part of the fund deployed directly into digital assets. In the same month, Dalio indicated that he thought governments would start applying taxes to cryptos. 

Comments are closed.