Billionaire Ray Dalio may have started a skeptic, but he now acknowledges the progress achieved by Bitcoin (BTC) over the last decade or so.
According to Dalio, the fact that the main cryptocurrencies remained unscathed by hacking and continued to operate based on a solid framework was a feat by itself.
However, BTC and Ethereum avoided near-cataclysmic events in terms of hacking vulnerabilities last year.
Today, Dalio no longer believes crypto is the worst kind of investment to make – cash is. Speaking to Yahoo! Finance last week, Dalio elaborated on what has made him change his mind: “I think it's impressive that for the last 10–11 years, that programming has held up. It hasn't been hacked, and it has an adoption rate.”
“Cash, which most investors think is the safest investment is, I think, the worst investment”, Dalio said.
Dalio even admitted to owning some BTC and Ethereum himself, but politely dodged the question when asked to specify how much crypto he currently owned. Instead, he explained that he was a proponent of “diversification” and that included cryptocurrencies.
Dalio’s change of heart has happened over the course of the last year, because his remarks from 2020 still described BTC as an unstable currency that didn’t offer much in the way of investment opportunity nor was it a good storage of wealth.
Of course, his criticism may have been an attempt to drop the value of the currency before buying it up himself.
His U-turn on crypto occurred early in 2021, when he acknowledged that BTC has its “pros and cons”. His position changed only months after Visa and PayPal announced that they would be exploring crypto and BTC more closely, starting a bull run on crypto that was later reinforced by Tesla CEO and tech billionaire Elon Musk.
While we cannot be certain how much crypto he owns, his change of heart is indicative enough that even the biggest critics of crypto are finally piping down.
Even Warren Buffett has refrained from publicly criticizing BTC out of respect for his fellow investors with whom he has business affairs.