Ray Dalio told Yahoo Finance that cryptocurrencies have become an impressive asset class and suggested cash could once again become a “problematic” asset.
Bridgewater Associates founder and co-chief investment officer Ray Dalio revealed that, in addition to Bitcoin, he now holds a small amount of Ether (ETH), the native cryptocurrency of Ethereum, the world’s largest smart contract platform.
The billionaire investor, who has led the global hedge fund for more than three decades, expressed admiration for the crypto sector and called its rise “impressive.” At the same time, he did not shy away from criticism, calling crypto potentially “the worst investment” for some.
Dalio shared these views in a Yahoo Finance interview published Thursday.
First Bitcoin, now Ethereum
Like many other major investors and hedge fund billionaires, Dalio was once skeptical of cryptocurrencies even as the technology grew dramatically over the past decade.
However, his stance shifted in May when he acquired Bitcoin amid broader institutional adoption of the flagship cryptocurrency and other digital assets. Rapid interest in decentralized finance (DeFi), non-fungible tokens (NFTs) and, more recently, the metaverse further strengthened the case for this new asset class.
A few months later, the U.S. investor revealed that he has also added Ethereum (ETH) to his crypto holdings.
“I don’t own a lot,” he told Yahoo Finance when referring to his ETH holdings. He also noted he could not disclose how much Bitcoin he currently holds.
Speaking about Bitcoin, Dalio said he finds it an extremely impressive technology that has remained secure for a long time and continues to be adopted around the world.
“I find it very impressive that over the last 10 to 11 years its programming has held up,” he said.
Investors may need to diversify away from cash
Dalio also shared his views on cryptocurrencies as an investment, calling them an alternative form of money and a legitimate investment option.
At the same time, he criticized cash, arguing that although most investors consider it safe, he believes it can be “the worst possible investment.”
He pointed out that, for example, a weakening dollar means inflation-adjusted losses of around 4–5 percent on dollar-based holdings. Dalio advocates diversification and warned that cash reserves could become a “problematic asset class.”