In a recent CNBC interview, whilst attending the World Economic Forum in Davos, Switzerland, Raymond Dalio has professed “cash is trash”.
Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, philanthropist and billionaire investor has warned investors against ditching and selling off their stocks for dollars.
Instead, Dalio suggests that people focus on building a diversified investment portfolio.
“You have to have a balance.”
This is a far contrast from billionaire, Warren Buffett, who at the last count was sitting on $128 billion in cash.
This comment comes from Dalio’s professional stance on currency, warning that the value of hard currency would be battered by a weaker dollar and growing money supply.
“The depreciation of the exchange rate and the printing of money over the next few years is going to be the biggest thing. Cash is not gonna be good.”
There are many options for you to diversify your investment portfolio, with cryptocurrency being a very popular option.
Crypto investments are proving to be a very popular option because of the way in which it works; decentralization.
Decentralization is defined as a process by which the activities of a certain organisation are taken away from their central, authoritive location or group and distributed or delegated to the user.
So, in this case, when we have a decentralised currency, this becomes a bank free method, and does not require a third party to process your transaction.
All over the world, banks for years have been working under secrecy and not putting their clients, or the interests of the people at the forefront of their business procedures. We only have to look at the big four banks within the Australian system to know that this is closer to home than what we may think.
If you are interested in crypto investments, make sure you do your research first before committing to anything. Like anything, there are always risks involved, but the reward for taking that risk may pay off ten fold.