Crypto Boom: Bitcoin Reacts to Fed Decision, Ray Dalio Weighs In

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• Ray Dalio, founder of Bridgewater, recently shared his views on the Federal Reserve’s decision to raise interest rates and the performance of Bitcoin.
• Dalio believes Bitcoin has “no relationship to anything” and is a “tiny” thing that gets “disproportionate attention”.
• He suggests that stablecoins are not the solution to future problems and instead advocates for an inflation linked coin in order to secure buying power.

Ray Dalio’s Views On The FED And Bitcoin

In a recent interview, Bridgewater founder Ray Dalio shared his views on the current Federal Reserve (FED) decision to raise interest rates by 25 basis points (bps) and the performance of Bitcoin (BTC) over the past few years. Speaking to CNBC, Dalio stated that what the crypto industry and Bitcoin have done over the past 12 years has been „amazing.“ However, he believes Bitcoin has „no relationship to anything“ and is a „tiny“ thing that gets „disproportionate attention,“ as its price moves on its own and its value is less than a third of Microsoft stock value.

Alternative Assets To Bitcoin

Dalio also mentioned there are more exciting assets in terms of value and storage of wealth compared to Bitcoin such as biotech stocks or other industries which would be more interesting for him than cryptocurrency markets. For him, cryptocurrency is not an effective medium of exchange either nor will it be sufficient money in the future according to him speculations.

The Future Store Of Wealth According To Ray Dalio

Commenting on the recent decisions by the FED and how it could affect money in jeopardy, Dalio suggested every economic crisis is part of a cycle but unfortunatelyBitcoin is not going to be part of that solution. Stablecoins also won’t work either as they will turn back into fiat currency eventually according too his point of view so instead he suggested what would be best an inflation linked coin in order o secure buying power for everyone who wants it.

The Development Of New Currencies

Accordingly with this new idea, industries will see developmentsof never seen before currencies which will be attractive for investments purposes as well as storing wealth properly without any risks associated with them like other cryptocurrencies have nowdays due their volatility nature .

Conclusion

                     Despite all speculation around cryptocurrencies such as bitcoin, renowned investor Ray Dalio sees potential in them but thinks they should focus more on become a storeof wealth rather than just being another speculative asset or trading tool given their volatily nature . In addition , he recommends focusing in developing new currencies better suited for those purposes such us inflation linked coins which could enable people securing their buying power much easier than other traditional means available right now .