Ray Dalio Discusses Bitcoin and Stablecoins in Investment Portfolios

According to PANews, Ray Dalio, founder of Bridgewater Associates, recently shared his insights on Bitcoin and stablecoins in an interview with Caixin. Dalio revealed that he has held a small portion of Bitcoin for many years, viewing it as a diversified asset relative to gold. However, he noted that Bitcoin has its drawbacks, particularly the reluctance of central banks to hold it. Dalio also commented on stablecoins, stating that they are not ideal for wealth storage. He explained that stablecoins are essentially redeemable for corresponding currencies and do not generate interest, making them less financially advantageous than interest-bearing fiat assets. Despite this, stablecoins offer the benefit of global usability, functioning as a convenient transaction settlement system, which may appeal to those indifferent to earning interest. Regarding the potential of stablecoins to address U.S. debt issues, Dalio suggested that if stablecoin buyers already hold U.S. debt, it merely shifts the debt from one pocket to another. Whether stablecoins can create new demand for U.S. debt remains to be seen.