Ray Dalio: "Bitcoin and stablecoins will not be able to replace ordinary money"

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Founder of management companyassets of Bridgewater Associates Ray Dalio believes that fiat currencies are losing value, but Bitcoin and stablecoins will not be able to become their effective replacement.

Being a guest of the Squawk Box program on the channelCNBC, billionaire Ray Dalio expressed fears that the massive printing of dollars by the US Federal Reserve (Fed) is devaluing this government currency, and this applies not only to the US, 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 serve as money. There is also little hope for stablecoins, since they have become copies of government-backed fiat currencies, said the head of Bridgewater Associates.

“It’s too early for Bitcoin to be an alternative to regularmoney. It is not an effective means of storing valuables or making payments. Bitcoin is getting too much attention even though its value is less than 1/3 of Microsoft's capitalization. But we live in a world where money as we know it is in danger,” Dalio said.

Instead of using stablecoins and regularcryptocurrencies, Dalio proposed creating an inflation-linked coin that would guarantee people would retain their purchasing power. The best option may be a bond with an inflation index, Dalio argues. 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 serve well as money, Dalio said.

However, not everyone agrees with Dalio's opinion ofBitcoin and its vision of a viable coin. For example, Bitcoin for Family Officers asset manager Eric Weiss 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 younger generation,” but last year the billionaire doubted the ability of the first cryptocurrency to compete with the precious metal.