Ray Dalio, multi-billionaire and founder of investment business firm Bridgewater Assembly, said investors should non miss out on traditional markets, CNBC reported on Jan. 21.

Dalio warned from holding Bitcoin, maxim that it's neither a medium of exchange nor a store of value.

Dalio was interviewed at the World Economic Forum in Davos, Switzerland, where he brash investors to hold a global and diversified portfolio in this market, while increasing their stake in stock markets.

While Dalio acknowledged recession concerns, he argued that "cash is trash" due to the authorities's power to impress it at will — something he believes they will be forced to do during a market downturn. Due to this, jumping into cash just before the eventual market autumn is sick-advised, according to Dalio.

The billionaire however cautions remainder, advising investors to concord "a certain amount of gold" in their portfolios.

His stance on Bitcoin (BTC) was far more negative, nevertheless, noting that it is not currently functioning every bit money:

"There'due south two purposes of money, a medium of exchange and a shop hold of wealth, and Bitcoin is not effective in either of those cases now."

He added that the volatility of Bitcoin makes it unattractive for serious investment, while something like Libra could be a better choice. Elaborating on his preference of gilded equally a shop of value, he noted that central banks are some of the largest metal holders:

"What are they going to concur as reserves? What has been tried and truthful? Are they going to concur Bitcoin digital greenbacks… They're going to agree gold. That is a reserve currency."

Bitcoin and the global economy

Bitcoin is often touted as "digital aureate," a reserve nugget independent from government control.

But while many believe in the store of value thesis of Bitcoin, its operation so far has not indicated meaningful correlation with global markets. While information technology does appear to accept slightly positive correlation to gold, the indexes are small enough that they tin can exist attributed to coincidence.

These may still be teething problems due to the relative novelty of cryptocurrencies. Every bit noted past Duke University professor Campbell Harvey, the sample size is still also small. Over thousands of years of history, even golden was not ever a reliable safety-haven asset.