financemagnates.com
An American billionaire investor and a prominent hedge fund manager, Ray Dalio recently revealed that he is the holder of Ethereum (ETH). Dalio called crypto a good tool for portfolio ‘diversification’.
The founder and co-chief investment officer of Bridgewater Associates said that cash is losing its buying power. Dalio also outlined the growing adoption of crypto assets like Bitcoin and Ethereum in the last few years.
Despite the reason that Dalio is not holding BTC or Ethereum in substantial amounts, the billionaire believes that the alternative money is gaining popularity due to the depreciation in cash. Dalio expressed his support for Bitcoin, Ethereum, and other digital currencies in the last few months. Earlier this year, he compared BTC with gold.
When asked about his Bitcoin and crypto holdings during an interview with Yahoo Finance, Dalio said: “Well, I'm not going to give the precise amount of Bitcoin, but I do own some Ethereum as well. But the answer to your question is that I don't own a lot of it. I view it as alternative money in an environment where the value of cash money is depreciating in real terms. And I think it's very impressive that for the last 10, 11 years, that programming has still held up, it hasn't been hacked, and so on, and it has an adoption rate. So, I'm very big on diversification, and it's a relatively small part of the portfolio.”
Bitcoin vs Ethereum
Despite a massive difference in useability and technical protocols, investors have started comparing Bitcoin with Ethereum as an inflation hedge against depreciating US Dollar (USD).
While the difference between the market cap of BTC and ETH is still significant, the latter one has narrowed the gap substantially during the second half of 2021, thanks to a price jump of almost 120%. In addition to BTC, institutional investors are also accumulating ETH in large amounts.