Ray Dalio of Bridgewater Associates: "I own Bitcoin but I'm not a whale, I still prefer gold"

Bridgewater Associates founder Ray Dalio revealed for the first time in May this year that he holds some Bitcoin based on the concept of diversification, and believes that in terms of hedging against inflation, his willingness to hold Bitcoin is higher than bonds, but in an interview today, he stated that gold is still his favorite.

Choose Gold Over Bitcoin

Legendary investor Ray Dalio, who is about to turn 72, stated in an interview with CNBC that:

"If you put a gun to my head and said, 'I can only have one,' I would choose gold. I am not a big owner of bitcoin. I have a little bit of bitcoin. I think that bitcoin, digital, is like a digital version of gold. I'm not a big owner."

Continuously Reevaluate Your Portfolio

Dalio further pointed out:

"The important thing is to keep re-evaluating these investments. Don't just because it has had a good recent past, you don't necessarily want to have more of it. And also, be careful about what you are putting it in. Diversify well globally, not just in the United States."

Dalio did not disclose how much bitcoin he holds. He sparked controversy last year with his "Bitcoin hunt" comments, which led to the community defending bitcoin. Dalio has maintained a personal perspective on this issue and has repeatedly stated his willingness to correct his views if misunderstood.

Earlier this year, he officially commented on bitcoin in a lengthy article titled "What I Think of Bitcoin," stating that in a future filled with extreme uncertainty, bitcoin seems to be a long-term target and he believes it is a significant invention. However, he still has some concerns:

Bitcoin's Success

Dalio has repeatedly pointed out that the biggest risk to bitcoin is its success, as this would lead to governments losing control over currency and subsequently heavily regulating bitcoin. He cited the 1934 Gold Reserve Act as an example, where citizens were prohibited from hoarding gold, with violators facing up to ten years in prison.

At this year's Consensus summit, he stated:

"Every country treasures its monopoly on controlling the supply and demand. They don't want other funds to be operating or competing because things can get out of control."

Volatility

Bitcoin's extreme volatility is also a concern, but for a fund founder who manages assets worth billions, Dalio stated that bitcoin is just a small part of all the investment puzzles he faces. He concluded:

"I look at it as a diversifier. It's like, 'Do I want to have some gold in my portfolio?' Yeah, I want to have some gold. It's a small, single-digit percentage of that which I have. I think that's part of a well-diversified portfolio, that's what I think."