Billionaire investor Ray Dalio revealed he thinks that bitcoin is not an “effective” form of money and fails as a medium of exchange. 

Dalio, who founded the world’s largest hedge fund Bridgewater Associates, made his comments to CNBC at the World Economic Forum in Davos, Switzerland. According to Dalio, bitcoin does not serve the purposes of money and fails to fulfill its basic tenants as a medium of exchange. 

He said, 

There’s two purposes of money, a medium of exchange and a store hold of wealth, and bitcoin is not effective in either of those cases now.

While Dalio warned against more speculative investments like bitcoin, he endorsed investment into gold and building a global and well-diversified portfolio away from cash. 

Dalio said, 

Cash is trash. Get out of cash. There’s still a lot of money in cash…You have to have balance…and I think you have to have a certain amount of gold in your portfolio.

Bridgewater Associates, which services global investments for around 350 institutional clients, has a reported $160 billion in assets under management. 

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