Bridgewater Associates founder: Stablecoins are not a good store of wealth, have held a small amount of BTC for many years

ChainCatcher reported that Ray Dalio, founder of Bridgewater Associates, analyzed the characteristics of bitcoin and stablecoins and their roles in investment portfolios in a recent interview with Caixin. He stated that he has held a small portion of bitcoin for many years, and the proportion of his investment has not changed. He regards bitcoin as a diversified asset relative to gold, but also pointed out its shortcomings, noting that central banks in various countries will not hold bitcoin.

Ray Dalio further stated that stablecoins are not a good means of storing wealth. Essentially, they can be exchanged for the corresponding currency but do not generate interest. Therefore, from a financial perspective, holding stablecoins is not as advantageous as holding interest-bearing fiat assets. The advantage of stablecoins lies in their global applicability, serving as a convenient settlement system for transactions, making them suitable for people who do not care about earning interest.

Regarding whether stablecoins can solve the US Treasury bond issue, he believes that if stablecoin buyers already hold US Treasuries, it is equivalent to transferring US Treasuries from one pocket to another. Whether stablecoins can generate new demand for US Treasuries remains to be seen.