Ray Dalio: When choosing gold between Bitcoin and gold, he said “the wave of wanting to buy NFT NFT is coming”

Recently, Ray Dalio agreed when he responded to individual investors allocating 1% to 2% of their investment portfolio to Bitcoin. And before that, he revealed that he owns a little bit of Bitcoin.

He also said that he wanted to buy NFTs, and the wave of NFTs is coming. Just wanting to buy, not owning it yet, but this is a big shift for someone choosing gold between bitcoin and gold.

After all, in the past, the most he said was, “Eventually if Bitcoin does succeed, they’re going to kill it…”

He believes that Bitcoin is volatile and therefore irrelevant to what he wants to buy, nor does it protect his purchasing power. He is a Bitcoin skeptic. Later, he also admitted that he was wrong about Bitcoin and owned a little bit of it.

Fired for feral behavior, thereby founding Bridgewater

In 1949, Dalio was born in a middle-class family on Long Island. He was an only child. He was curious since he was a child and liked to figure out things.

In the 1960s, the U.S. economy accounted for 40 percent of the world’s total, and overall, everyone was full of hope for the future. Dalio was young at the time.

At that time, many people were talking about the stock market, and he used his caddie money to invest in stocks and bought Northeast Airlines for the first time. The reason to buy the stock is simple, only this stock is below $5.

Later, when Northeast Airlines was acquired, he made money and thought it was easy to make money in the stock market. He is more afraid of boredom and mediocrity than failure. But at that time he was roaming the stock market happily and making money, unaware that a crisis was approaching.

After entering the stock market lows in 1966, Dalio believed that the stock price would rebound, so he kept buying despite the market’s lower. Until he realizes that the stock price reflects people’s expectations, the result is better than expected, it will rise, and vice versa, it will fall. This lesson did not affect his life.

Ray Dalio: When choosing gold between Bitcoin and gold, he said "the wave of wanting to buy NFT NFT is coming"

Ray Dalio

He went to college to major in finance, loved the market, and was exposed to commodity trading. Later, he briefly took a job as a stock trader. During this time, he has raised awareness by studying the impact of policies on the market and the process of past currency devaluations.

He was also in charge of a company’s commodities business for a while, which then went bankrupt. He has since moved into Shearson & Company responsible for its futures hedging business, including commodity futures and financial futures.

But at an annual meeting, he hired a stripper to take off his coat while he was giving a speech, and he punched his boss in the face and was fired. But the people he dealt with liked him, so he started Bridgewater.

In fact, Bridgewater is restarting. He used to do commodities trading with friends at Harvard Business School under the name Bridgewater, but then the business stopped.

Bridgewater has gone through twists and turns, and finally became the world’s number one hedge fund

Dalio mainly tracks market dynamics, works from his own apartment, and shows clients how to deal with market risk. Plus, he does his own business.

However, he began to use models to understand the relationship between different commodities, such as the link between cattle and feed, and to predict the amount of meat to be marketed in the future. Through continuous improvement and observation of the market, the principles of causality processing within complex systems are fed into computers to standardize decision-making.

But he lost $100,000 on a “sure-win” bet, almost all of his savings. This made him understand that nothing was certain and changed his behavior.

Clients talk to him on the phone, he thinks it’s inefficient, and it’s easier for others to understand and improve together in words. Later, he published a book “Principles” showing the principles of doing things that were important to him.

Between 1979 and 1981, the state of the U.S. economy deteriorated and markets were volatile. Some say this is the most turbulent period to date.

Mexico defaults on its debt, and the US increases the money supply. After Dalio predicted this, he bought gold and Treasury bond futures to hedge against Eurodollars.

But this move cost him everything, and he was the only one left in the company. He summed up the reasons for the failure: overconfidence and indulging in emotions; re-appreciating the value of studying history; timing the market is difficult.

He has since set himself the goal of getting himself right, regardless of where the correct answer comes from. In constant exploration, he discovered the “holy grail of investment”, developed a system to manage investment portfolios with the help of computers, fully weighed the relationship between investment risks and returns, and changed Bridgewater with the “alpha” in the number of assets/asset portfolio fate.

“The safest way to have a lot of advantages without being exposed to unacceptable disadvantages is to make a series of good, unrelated bets that balance and complement each other,” he said.

Bye bye, Dalio became the “King of Wall Street”, and Bridgewater became the world’s number one hedge fund, with about $150 billion in assets under management. AICIO Magazine and Wired have dubbed him “the Steve Jobs of investing,” and Time Magazine named him one of the 100 Most Influential People.

Now, he is no longer involved in day-to-day management and retired from the co-CEO position in March 2017, though he remains co-chief investment officer and co-chairman of the company.

Collision and change in the encrypted world

Dalio’s widely spread opinion in the crypto world is that governments will outlaw Bitcoin, “eventually if Bitcoin does succeed, they will kill it…”

Of course, Bitcoin is volatile and not a good medium of exchange is also a problem. But most importantly, he doesn’t think the government wants cryptocurrencies to succeed.

Therefore, his identity in the circle is a Bitcoin skeptic. When Cathie Wood predicted that Bitcoin would rise tenfold in five years, he questioned it, calling it nonsense.

When Bitcoin hit $16,000 in November 2020, he said, “I don’t think digital currencies will be as successful as people expect.”

However, he then tweeted: I may be missing something about Bitcoin, so I’d love to be corrected. He admits he was wrong about Bitcoin in the past.

Also, he asserts: “It’s not a great store of wealth because it’s volatile and has little correlation to the price of what I need to buy, so owning it doesn’t protect my purchasing power.” This is He thinks the reason why you can’t trade bitcoin, you can’t own bitcoin.

In December, Wall Street financial analyst and Bitcoin proponent Max Keizer expressed his belief that Dalio will invest in Bitcoin sooner or later.

And Dalio did say later: “It can be used as a diversification tool for gold and other such wealth assets. The most important thing is to have some of these assets in one’s portfolio including stocks (limited supply, It is highly liquid, a store of wealth) and diversifies investment in it.”

In January 2021, he said Bitcoin was a genius invention and he was considering cryptocurrencies as an investment option for a new fund that would provide clients with protection from the devaluation of fiat currencies.

“The invention of a new type of currency through a computer program that has been in operation for about 10 years and is rapidly gaining popularity as a form of money and a store of wealth is a remarkable achievement. Currently, there are not many other gold-like assets that are growing in demand. ”

In order to avoid the media taking it out of context, he posted an article about his views on Bitcoin.

In September, he said he owns some bitcoin, the government doesn’t want cryptocurrencies to succeed, cash remains junk, and the stock market’s advantage will shrink. In October, at an event, he stated that he would choose gold over Bitcoin. In December, he said that he wanted to buy NFTs, and the wave of NFTs was coming.

Asked recently whether it would make sense for individual investors to allocate 1 to 2 percent of their portfolio to bitcoin, Dalio said: “I think it is.”

Whether it is right or not may not be confirmed yet, but it is a fact that the world is changing.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/ray-dalio-when-choosing-gold-between-bitcoin-and-gold-he-said-the-wave-of-wanting-to-buy-nft-nft-is-coming/
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