Billionaire Ray Dalio Explains Why He Owns Bitcoin And Ethereum by Best Owie 4 days ago in Bitcoin, Ethereum Reading Time: 3 mins read
Billionaire Ray Dalio has revealed that he holds bitcoin and ethereum holdings. Various billionaires have also been public about their bitcoin and ethereum holdings. For a lot of these billionaires, the move from cash into cryptocurrencies has been a pertinent one as the former continues to lose its value in the market. Dalio also gave this as a reason for holding the cryptocurrencies.
Growing concerns about the value of cash as an investment have seen both institutional and individual investors move their holdings into cryptocurrencies. Coupled with rising inflation rates, diversifying into cryptocurrencies like bitcoin and ethereum has become more popular.
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Dalio Owns Bitcoin And Ethereum
Billionaire Ray Dalio sat down with Yahoo! Finance to talk about the financial market and how one can be successful in it. Talking with host Andy Serwer, Dalio confirmed once again that he owned bitcoin but this time around, the billionaire revealed that he had added ethereum to his holdings. This was in response to a direct question from Serwer about the billonaire’s crypto holdings.
Dalio declined to give a precise amount of bitcoin that he owned, which is understandable, but explained that he did not own a lot of either bitcoin or ethereum. As for the reason behind holding these cryptocurrencies, Dalio explained that it was because he viewed it as an alternative to cash. “I view it as an alternative money in an environment where the value of cash money is depreciating in real terms,” said the billionaire.
Diversification Is Key
For Dalio, buying into bitcoin and ethereum is also a diversification play. During the interview, the billionaire hedge fund manager reiterated that investing in cash is the worst investment there is. This is because cash loses buying power and as such, the longer one holds cash, the lesser the buying power of that cash. He urged investors to not “judge anything in your returns or your assets in nominal terms, in terms of how many dollars you have. View it in terms of inflation-adjusted dollars.”
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Dalio stresses that it is important for investors to always diversify their portfolio and that is what he has done with his crypto investments, even though it is still a relatively small part of that portfolio.
“The important thing is to diversify one’s portfolio well. Because we know from the surprises in the balance– we also know that those asset classes on average significantly outperform and will significantly outperform cash.”
The billionaire concluded by saying that cash is a “problematic asset.” Therefore, diversification out of this asset is important. “And that diversification should be also international diversification from countries, not just asset classes, in order to have a truly well-diversified portfolio,” Dalio added.
Crypto Biz: The blockchain revolution will cast aside the skeptics, Dec. 23-30 Although crypto prices didn't live up to their lofty expectations in 2021, the outlook on the blockchain economy is as strong as ever. SAM BOURGI 3 MINUTES AGO
From a price perspective, the cryptocurrency market is ending 2021 with a whimper as Bitcoin (BTC), Ether (ETH) and other digital assets continue to trade well below their prior peaks. But the business of blockchain and crypto is heating up, as evidenced by the arrival of institutional capital and the flood of venture funding into the space. According to Nischal Shetty, CEO of India's WazirX crypto exchange, the digital asset revolution is already underway and will continue with or without your participation.
Below is the concise version of the latest "Crypto Biz" newsletter, which is delivered to your inbox every Thursday. Register for the full newsletter below to receive comprehensive insights every week.
Crypto won't wait for nations to come on board: WazirX CEO
With crypto being thrust into mainstream consciousness in 2021, lawmakers around the world are scrambling to regulate the digital asset class. WazirX's Nischal Shetty believes nation-states will soon be in an arms race to develop and launch local versions of central bank digital currencies, or CBDCs. “We’re optimistic that we’ll get regulatory clarity and see institutional participation fuel retail adoption," he said. “There is a $2.5-trillion market out there, and it is not going to wait for any nation to come on board."
FTX wants to intice banks to start accepting stablecoins
Cryptocurrency derivatives exchange FTX is prepared to offer banks $1 million in prize money to begin accepting stablecoins. The offer, which was floated in a Tuesday Twitter post, is intended to strengthen FTX's ties with traditional finance to help its customers better facilitate "near-instant and near-free deposits and withdrawals through stablecoins." Although the offer is no doubt intriguing, banks are unlikely to commit to supporting stablecoins until federal regulators chime in on the matter.
DeBank valued at $200M following private equity round
This week's biggest funding news came courtesy of DeBank, a cryptocurrency wallet focused on decentralized finance solutions. On Tuesday, the firm announced it had completed a $25 million private equity round that was led by Sequoia China with additional participation from Dragonfly, Hash Global and Youbi, among several others. DeBank is now valued at $200 million, highlighting once again that DeFi-focused startups were attracting significant interest from venture capitalists.
Related: Kevin O'Leary says his crypto holdings could reach 20% of portfolio
Binance pursues regulatory approvals in Bahrain and Canada
Binance is wrapping up a highly tumultuous year on a positive note after the cryptocurrency exchange announced it had received a pair of licensing approvals from Bahrain and Canada. The green light from Bahrain gives the exchange license to operate as a crypto service provider in the tiny Gulf state. In Canada, however, the picture is a bit murkier. While Binance claims that it is licensed to operate in the country after incorporating a subsidiary called Binance Canada Capital Market, Ontario's securities regulator issued a statement Thursday that the exchange is "not registered under securities law" in the province. (It should be noted that Binance's subsidiary registered as a federal corporation whereas the Ontario Securities Commission has jurisdiction over the province of Ontario.) As Cointelegraph reported, Binance was effectively kicked out of Ontario, Canada's most populous province, in June after local regulators began clamping down on unregistered trading platforms.
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