As a guest on CNBC's Squawk Box, billionaire Ray Dalio expressed concern that the massive dollar printing by the US Federal Reserve System (Fed) devalues this national currency, and this applies not only to the United States, but also to other countries.. However, according to Dalio, bitcoin will not be able to solve this problem, since after 14 years of its existence, it is still unstable to perform the function of money.. There is little hope for stablecoins either, as they have become copies of government-backed fiat currencies, said the head of Bridgewater Associates.
“Bitcoin is still too early to be an alternative to conventional money. It is not an effective means of storing valuables or making payments.. Bitcoin attracts too much attention, although its value is less than 1/3 of Microsoft's capitalization. But we live in a world where money, as we are used to seeing it, is in danger,” Dalio said.
Instead of using stablecoins and conventional cryptocurrencies, Dalio proposed the creation of an inflation-linked coin that would guarantee people the preservation of their purchasing power.. An inflation-indexed bond could be the best option, says Dalio. If a person knows his purchasing power, he can save his money, invest it somewhere for a certain period, or make transactions anywhere. Such a coin would function well as money, Dalio said.
However, not everyone agrees with Dalio's opinion on bitcoin and his vision of a viable coin.. For example, Eric Weiss, Asset Manager at Bitcoin for Family Officers, tweeted that Bitcoin is very close to solving the world's problems, despite its volatility, and the solution “vaguely described by Dalio” simply does not exist.
Note that in 2021, Dalil called bitcoin “gold for the young generation”, but already last year, the billionaire doubted the ability of the first cryptocurrency to compete with the precious metal.