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Two extremes who view the US dollar as garbage: Bridgewater Associates founder Ray Dalio and Rich Dad Poor Dad author

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Two extremes who view the US dollar as garbage: Bridgewater Associates founder Ray Dalio and Rich Dad Poor Dad author

Ray Dalio, the founder of Bridgewater Associates, pointed out during a Reddit Ask Me Anything event on Tuesday that central banks are printing money unlimitedly and lowering interest rates to combat the economic downturn caused by the Wuhan coronavirus outbreak. In such an environment, he believes that holding assets is a better choice than holding cash. At the same time, the author of "Rich Dad Poor Dad" also posted today stating once again that the US dollar is on the brink of collapse. Both are disappointed with holding US dollar cash but have chosen different paths.

Holding Cash Is a Waste of Behavior

A billionaire investor explained to Reddit users the current economic situation and gave many investment advice in a Reddit Ask Me Anything event on Tuesday. When asked whether it is "cash is king" or "cash is trash" at the moment, Ray Dalio pointed out that central banks have been issuing a lot of cash to purchase debts and lower interest rates for relief efforts. In such circumstances, holding cash is considered a waste of behavior:

"When you think about what assets are safe havens and think about cash. Remember, although its volatility is not as high as other assets, the return on holding cash is negative compared to the value or cost associated with goods and services and other financial assets, adding up to several percentage points per year."

Lastly, Ray Dalio emphasized that he personally believes holding cash is relatively wasteful, especially compared to choices that can preserve or increase value during inflationary periods, such as gold and certain stocks.

Many are concerned that the unprecedented injection of funds by the Federal Reserve to combat the COVID-19 pandemic in the economic system may have an impact in the future. In response to this, Ray Dalio said:

"We are now in the era of the largest 'Monetary Policy 3 (MP3) / helicopter money' monetary stimulus since World War II."

Nevertheless, Ray Dalio also emphasized that despite the Federal Reserve's printing press running non-stop, most people around the world are still using the US dollar for savings and transactions, so the dollar is still in a state of monetary tightening.

"I have many thoughts on the value of money, and I believe it has no intrinsic value."

As for where the value storage should be, Ray Dalio's answer has never been Bitcoin. He has warned against holding Bitcoin, as it is neither a medium of exchange nor a value store.

The US Dollar Is on the Verge of Collapse: Bitcoin Is the Choice

On the other hand, Robert Kiyosaki, author of "Rich Dad Poor Dad," has expressed mixed feelings about the Federal Reserve's aggressive issuance of the US dollar. In his latest tweet released yesterday, the author criticized that the Federal Reserve is leading the dollar into a pit and directly pointed out that the PhDs at the Federal Reserve are fools. He advised the public to store assets in real gold, silver, and Bitcoin to avoid becoming a casualty of the Federal Reserve.

"Why is the US dollar on the verge of collapse? In 2008, the Federal Reserve issued $4.5 trillion to save the wealthy. In 2020, the Federal Reserve may need to print another $6 to $8 trillion to save the US economy. There is only $9.5 trillion of gold in the world. Buy 'physical' gold, silver, Bitcoin, instead of gold or silver ETFs. Those PhDs at the Federal Reserve are just idiots."

Comparatively, Robert Kiyosaki holds a more optimistic attitude towards Bitcoin, viewing it as a value storage medium equivalent to gold. Both individuals are disappointed with government-backed banknotes, but they do not share the same views on new types of digital assets.