Billionaire hedge fund manager Ray Dalio has recently had a change of heart on the flagship cryptocurrency
The Bridgewater Associates founder previously showed scepticism on Bitcoin for its volatility, rooting for gold instead. His stance seems to have changed
Hedge fund manager Ray Dalio has moved his tent’s posts closer to the Bitcoin camp, with his recent revelation coming months after a change of tune on Bitcoin.
The billionaire investor, known for popularising risk parity, currency overlay and global inflation-indexed bond management, previously preached against Bitcoin and other crypto assets. He held that the leading crypto Bitcoin could be banned by governments should it evolve and emerge as a serious competitor to fiat currencies, therefore, preventing capital flow.
Bitcoin has evolved in the past decade
This week, speaking in an interview with CNBC, the billionaire acknowledged the asset’s progress over the past 11 years. This, he pointed out, showed Bitcoin had managed to pass the test of time without breakdown, cementing the idea of it sticking around for the foreseeable future. He also added that he had allocated part of his portion to Bitcoin.
“Bitcoin has made a tremendous achievement over the last 11 years. It’s a tiny percentage of my portfolio,” he said.
Though he did not reveal the size of Bitcoin holdings during the interview, the billionaire advises an allocation of roughly 1-2 % of an investor’s portfolio to Bitcoin.
Central African Republic (CAR) is developing a crypto hub dubbed ‘Sango’
Elsewhere, having become the second country after El Salvador to adopt Bitcoin as a legal tender, the CAR is scaling up operations to integrate Bitcoin into the financial system and the country’s economy.
A crypto hub, having the full support of the country’s National Assembly and the country’s president is the first concrete step in this direction. The CAR government is counting on this hub to attract global investors and crypto firms into the country.
Promising potential firms access to resources like gold, diamonds and uranium, CAR is optimistic that the plans will materialise in due time. The country’s leader also hopes that the Sango project will take Bitcoin adoption to the next level, help tackle bureaucratic problems and promote competition.
Much like El Salvador’s decision that was met with criticism, the Central African Republic’s choice to adopt Bitcoin hasn’t been a smooth one. The country’s infrastructure position and poor development status don’t help allay concerns around the same. CAR has low internet usage and the electricity supply is yet to reach reliable levels.