Bridgewater Fund's Dalio: Bitcoin has nothing to do with anything, stability coin is not what we should pursue

Ray Dalio, founder of Bridgewater Associates, stated on CNBC, "Bitcoin has nothing to do with anything, it doesn't affect anything."

Ray Dalio, founder of Bridgewater Associates, stated on CNBC that "Bitcoin has nothing to do with anything, it doesn't affect anything."

He mentioned that Bitcoin is a tiny thing that is overly focused on, with a market value smaller than one-third of Microsoft's stock market value, and it is not an efficient store of wealth. However, he also pointed out that the world's money is in danger because too much money has been printed.

"The question now is, what is money? And how will it function?" He believes that the Chinese yuan currently has a digital form, and in the future, it may become more influential, especially if it is used more in cross-border trades such as Arab oil trading and everyday goods imported from China. The future issue is what money is, not just a medium of exchange, but a store of wealth.

The host remarked that it sounds like the discussion is about Bitcoin.

Dalio denied this claim. He mentioned that if you are talking about digital currencies, that's a different story. He doesn't think stablecoins are a good solution because it goes back to the issue of fiat currencies.

He believes that the best option is a currency that reflects inflation, ensuring purchasing power remains constant. As for Bitcoin, its volatility makes it unable to maintain purchasing power.

"#Bitcoin has no relation to anything. It's a tiny thing that gets disproportionate attention," says @RayDalio on #crypto. "The value of $BTC is less than 1/3 of $MSFT stock. It's not an effective store of wealth. But we are in a world where money as we know it is in jeopardy." pic.twitter.com/Cc7o2TwkxG

— Squawk Box (@SquawkCNBC) February 2, 2023