El Salvadorian president assures Bitcoin will rise again; purchases more

<SUNBIGHT>~Cryptocurrency~Orie~1st July,2022 @ 17:59 WAT~Peoples Gazette

El Salvador, San Salvador – The president of El Salvador, Nayib Bukele, says cryptocurrency Bitcoin will soon rebound despite its current slide in value.

Mr Bukele gave the assurance on Thursday while announcing that the country has purchased a total amount of 80 bitcoins at the rate of $19,000.

The El Salvador leader has faced growing criticisms from citizens as the value of bitcoin continues to experience a dip in its value. 

The country has invested hugely in the cryptocurrency and even made Bitcoin its legal tender in September 2021, alongside the U.S. dollar.

More than 2,000 Bitcoins have been purchased by the Central American country over this period.

“Stop looking at the graph and enjoy life,” Mr Bukele advised investors via Twitter. “If you invested in BTC your investment is safe and its value will immensely grow after the bear market.  Patience is the key.”

El Salvador last year April became the first country to acquire Bitcoin as a means of legal tender; this paved the way for other countries to follow suit.-■

The role of Bitcoin and other cryptocurrencies in empowering Nigerians

<SUNBIGHT>~Cryptocurrency~Eke~26th June,2022 @ 04:19 WAT~Business Insider Africa

NIGERIA is known for many things; for its rich material resources and human resources and for being the “giant of Africa.” Amidst economic challenges, Nigeria is repositioning well with the dominance of cryptocurrency adoption among its populace.

Despite regulations by the government limiting crypto trades among financial institutions in what was described as a bid to protect citizens and observe the growth of the technology, many citizens have continued to engage in crypto regardless.

Today, the average Nigerian youth is interested in cryptocurrency, not just because of the trendiness but also to seek financial freedom. This article explores the different opportunities that a bitcoin-dominated payment system could create for average Nigerians in terms of economic opportunities.

According to Statista, Nigeria is one of the countries in Africa with not only the highest population but also the highest number of cryptocurrency adoptions.

On a scale of 1 to 10, 6 out of 10 Nigerian youths are interested in cryptocurrencies. About 4 out of them must have invested in these currencies, either by trading Bitcoin or running a remittance/OTC business.

There is a thriving market for crypto in Nigeria, and we’ll be looking at some of the ways that bitcoin and other cryptocurrencies are creating opportunities for Nigerians:

In a country with a high poverty index, and the naira triggering increased inflation, bitcoin and other cryptocurrencies represent a more alternative source of asset distribution and financial transfer.

Going back to the bitcoin whitepaper authored and released by Satoshi Nakamoto, the idea of cryptocurrencies is to create an inclusive payment system that is easier, faster and free of intermediary influence.

Today, Nigerians can buy, sell and store cryptocurrency without consulting an intermediary in the form of a bank or carrying physical cash. The trust has been enacted further by introducing Peer-to-Peer (P2P) based transactions.

Beyond the financial inclusion and provision of financial services to the “unbanked,” bitcoin has become a source of livelihood for Nigerians.

According to Cointelegraph, crypto and blockchain jobs’ share grew 118% in 10 months and has hired the most of any industry in the last year.

Nigeria is not left out as many have gotten jobs in crypto writing, blockchain development, product design, NFT marketing, community management, game development etc.

The beautiful thing about these opportunities is that they pay between $200-$3000/per month, depending on experience, which is remarkable since the country’s minimum wage is around $70. Based on the prevailing exchange rate of the dollar to the naira and the massive unemployment, Nigerians can now earn income from trading, investing in bitcoin and working in the cryptocurrency industry.

3. Cryptocurrency Trading and OTC/Remittance

This is the most popular cryptocurrency investment strategy in Nigeria. Cryptocurrency enthusiasts in the country buy bitcoin to sell at a profit or stake them to earn passive income. 

Staking a cryptocurrency simply means putting it in a liquidity pool or offering it up for use in borrowing and lending services to those who need the asset.

Nigerians also offer remittance services, whereby they exchange bitcoin or some other cryptocurrencies for Naira Over-the-Counter OTC.

For example, a Nigerian Over-the-Counter (OTC) trader can offer to buy bitcoin from another Nigerian and pay the person in Naira. Millions of Naira are transacted daily just for OTC trades, thus, creating a constant stream of income for the traders.

Blockchain is the underlying technology that powers the bitcoin cryptocurrency. It has also been used as a decentralized infrastructure/network powering many other decentralized projects and platforms.

The successful adoption of Bitcoin and cryptocurrencies in Nigeria has increased blockchain consciousness, with many young Nigerians picking up valuable careers in the crypto industry.

Based on the anticipation of a broader crypto use case and the enthusiasm shown so far by Nigeria’s younger population, the bulk of the technology’s success in the country lies with the government.

If the government lifts the ban on banks for crypto trade and puts systems in place to make it more mainstream, more Nigerians will be encouraged to invest in cryptocurrencies. The government just needs to regulate the market and ensure that bitcoin is not used to promote Ponzi schemes, perpetuate cybercrimes or promote fraud.

Stakeholders in Nigeria’s financial market, including financial service providers, banks and lending firms and regulatory bodies, need to strategise better on harnessing the potential of cryptocurrency in the country.

When fully regulated and recognized by law, bitcoin and indeed cryptocurrencies would not only attract Foreign Direct Investment (FDI) in the country but will also help solve some of the economic struggles that have befallen the country in recent times.■

NFT: Coffin Dance Meme sells for $1,047,806

<SUNBIGHT>~Cryptocurrency~Orie~12th April 2022 @ 16:25 WAT~PeoplesGazette

THE Non-Fungible Token of the Coffin Dance meme has sold for $1,047,806 (327 ETH).

On Saturday, the winning bid was announced on Twitter.  

“327 ETH winning bid!!! $1,047,806. Congrats to @nanaotafrija & the bidder,” Twitter user  @Luke360 said.

The token is issued in partnership with the Ukrainian community, where 50 per cent of the proceeds will be donated to support Ukrainian charities in light of the war with Russia.

The meme was released by the lead pallbearer, Benjamin Aidoo, and Matthew “DigiNeko” Ordrick, who uploaded the video on YouTube.

“Congratulations to the official owner of Coffin Dance world fame @3fmusic  We would like to say thank you to everyone who supported our NFT, especially guys from the @Bads_Zlodei: Dmitry Makarov, Eugene Lapitsky, Mykhailo Vatazhok,” Mr Aidoo tweeted. 

The Coffin Dance meme originated from a video of the Ghanaian group of pallbearers based in the Greater Accra Region of southern Ghana. The leader pallbearer is Benjamin Aidoo, and the group garnered worldwide attention in 2020.

In March 2020, the group became an Internet meme when the video was uploaded with Tony Igy’s EDM song “Astronomia.” The meme is often associated with the COVID-19 pandemic.■

Why Bill Gates warns against investing in Bitcoin: ‘If you have less money than Elon, watch out’

<SUNBIGHT>~Cryptocurrency~Orie~12th April,2022 @ 01:30 WAT~CNBC

PLENTY of celebrity and tech icons have hopped on the Bitcoin train. Don’t count Bill Gates among them.

In a resurfaced interview from February 2021, the billionaire Microsoft co-founder told Bloomberg Technology that he was wary of the frenzy over Bitcoin, particularly because the value of the cryptocurrency could be swayed by something as simple as a tweet from Tesla CEO Elon Musk.

“Elon has tons of money, and he’s very sophisticated, so I don’t worry that his Bitcoin will randomly go up or down,” Gates said. “I do think people get brought into these manias who may not have as much money to spare, so I’m not bullish on Bitcoin.”

He added, “If you have less money than Elon, you should probably watch out.”

Musk — the world’s richest person, with a net worth of $233 billion, according to Forbes — is notably a Bitcoin fan, tweeting about it as recently as Wednesday morning. But Gates said his fellow tech billionaire was merely an example of why he’s turned off by everyday Bitcoin use.

Specifically, Gates said, he’s primarily concerned about the lack of regulation around the cryptocurrency. He highlighted two of the main risks associated with Bitcoin and other forms of cryptocurrency: They’re decentralized, and they can be highly volatile.

″[Bitcoin] happens to promote anonymous transactions,” Gates said. “They’re not reversible transactions.”

Gates said that the Bill and Melinda Gates Foundation actually “does a lot in terms of digital currency,” but only when “you can see who is making the transaction.” He said “digital money is a good thing,” especially when it comes to funding poorer countries and getting “money out to their citizens very, very efficiently.”

The good news for Gates is that regulation may be coming. On Wednesday, President Joe Biden signed an executive order encouraging federal agencies like the U.S. Treasury to develop new crypto-related policy recommendations — with an eye on addressing consumer protection, financial stability, illicit activity, U.S. competitiveness, financial inclusion and responsible innovation.

Those are important areas: Crypto experts often warn that altcoins, in their current state, are at a high risk for fraud — and that they can gain and lose value very quickly, making them deeply unreliable as investments.

“Be very careful about how much you allocate and understanding what you an tolerate,” Douglas Boneparth, a certified financial planner and president of Bone Fide Wealth, told CNBC Make It last year. “Because if 80% of your net worth is tied to bitcoin, and it goes down 30%, that’s rough.”■

Bitcoin Breakout Elusive as Traders Price In 7 Fed Rate Hikes for 2022

<SUNBIGHT>~Cryptocurrency~Afo~16th March,2022 @ 09:10 WAT

BITCOIN (BTC) dropped and U.S. stock futures nursed losses as interest rate derivative traders expect the U.S. Federal Reserve could raise rates seven times this year, and the tightening cycle would peak at a level higher than previously anticipated.

  • The top cryptocurrency by market value traded 3% lower on the day at $38,300 during the European session, having almost tested the $40,000 mark late Monday, CoinDesk data shows.
  • The futures tied to the tech-heavy Nasdaq 100 index traded 0.5% lower, signaling a continued risk aversion. On Monday, the index fell 2%, leading the S&P 500 and Dow Jones lower as investors rotated money into value stocks from growth stocks ahead of an impending Fed rate hike on Wednesday.
  • As of Monday, overnight index swaps saw the Fed funds rate, or the benchmark interest rate, at 1.85% after the December meeting. An overnight index swap is an agreement where a fixed rate is swapped against a pre-determined published index of a daily overnight reference rate.
  • In other words, with the current effective Fed funds rate at 0.08%, traders expected 175 basis points worth of tightening for 2022. That’s equivalent to seven quarterly percentage point (25 basis point) rate hikes. Markets had priced in two of the seven rate hikes, leaving five on the table following Russia’s invasion of Ukraine on Feb. 24.
  • The renewed hawkish repricing aligns with investment banking giant Goldman Sachs’ forecast. It suggests bleak near-term prospects for risk assets, including bitcoin, more so as traders see interest rate peaking around 2.57% in the second half of 2023 – up 50 basis points in one week and 100 basis points this year, according to Reuters.
  • Marc Chandler, chief market strategist at Bannockburn Global Forex, said the Fed is likely to raise the forecast for the so-called terminal or peak interest rate to 3% from December’s projection of 2.5%.
  • The Fed is widely expected to kick off the tightening cycle on Wednesday with a 25 basis point rate hike.

[Culled from Omkar GODBOLE// CoinDesk]

Kevin O’Leary says he’s put 20% of his portfolio in crypto, including tokens and blockchain firms

<SUNBIGHT>~Cryptocurrency~Afo~12th March 2022 @ 13:07 WAT

CELEBRITY investor Kevin O’Leary told CNBC on Friday that one-fifth of his investment holdings are tied up in cryptocurrencies and companies operating in the nascent digital asset industry.

“I have millions of dollars, 20% of my portfolio is now in cryptocurrencies and blockchain,” O’Leary said in an interview on “Squawk Box.” Blockchains are the distributed digital ledgers on which cryptocurrencies run.

Cryptocurrencies have attracted considerable attention and investment in recent years, including from large institutions and high-profile figures like hedge fund manager Paul Tudor Jones and fund manager Bill Miller.

Many tout bitcoin, the world’s largest cryptocurrency by market value, as a long-term store of value. There’s a raft of other, smaller digital tokens, too.

Crypto backers say it remains early earnings for the industry — bitcoin itself has only been around since January 2009. Still, crypto startups are attracting billions of dollars of venture capital.

At the same time, the burgeoning asset class remains volatile, and regulators like Securities and Exchange Commission Chairman Gary Gensler have warned about its “highly speculative” nature and the lack of investor protection. The outgoing chair of the U.K.’s financial regulator also has warned about pump-and-dump schemes in certain digital tokens.

Among crypto’s detractors, billionaire businessman Charlie Munger, a longtime partner of Warren Buffett and a Berkshire Hathaway vice chair, has also been critical of digital currencies and their volatility.

In February, he said he wishes the U.S. had banned them. Buffett is no fan either, calling bitcoin in 2018 “rat poison squared.” Others have likened bitcoin to a Ponzi scheme.

Asked by CNBC’s Andrew Ross Sorkin whether some cryptocurrencies will not even be around in a decade, O’Leary said he’s taken that risk factor into consideration.

“You have to be diversified. I own 32 different positions, including equity FTX itself,” O’Leary said while disclosing he’s a paid spokesperson for the cryptocurrency exchange, founded by 30-year-old billionaire Sam Bankman-Fried.

“The whole point is, you don’t know who is going to win. Is Ethereum going to win? Is solana going to win? Is it Helium or is it Avalanche? I own them all,” said O’Leary, who is a co-host of “Shark Tank” and makes other venture capital investments. He’s also the founder and chairman of O’Shares ETFs.

O’Leary’s comments Friday come two days after President Joe Biden signed an executive order that directs the U.S. government to analyze the cryptocurrency industry. The administration says the order’s goal is to both address risks while “harnessing the potential benefits of digital assets and their underlying technology.”  

“It wasn’t an all out ban, so that’s good news,” O’Leary said. However, he expressed concerns about the way Biden’s directive includes an emphasis on climate risks associated with cryptocurrency.

The act of mining bitcoin — which, in practice means running computers to verify transactions across the blockchain network — requires a lot of power. As a result, critics have lamented the carbon footprint of bitcoin mining.

O’Leary said he’s invested in at least one private bitcoin mining facility. However, he said he sold his positions in publicly traded bitcoin mining firms after Biden’s executive order.■

[Culled from Kevin STANKIEWICZ// CNBC]

Is Crypto a Miracle or Scam?

<SUNBIGHT>~Cryptocurrency~Nkwo~5th March,2022 @ 08:35 WAT

CRYPTOCURRENCY is officially mainstream. Approximately 16 percent of all Americans have invested, traded, or used a decentralized, blockchain-based token, which is a number that seems to increase everyday.

The Super Bowl—the singular marquee event for advertisers—was absolutely canvassed with crypto platform ads, picking up ultra high-profile celebrity endorsers in million dollar commercial productions.

At last, a financial apparatus once condemned to the arctic regions of the economy has firmly pried its way into common society.

For those of us who haven’t made the jump yet, crypto appears to be both enticing and terrifying—caught in an uncomfortable place between a pernicious scam and a potential miracle.

There are so many questions worth considering. What happens if you invest money into a coin that crashes? How easy is it to pull money out? Have you already missed the boat? And, a big one lots of people likely don’t even think about: what about tax season?

The idea of navigating any Ethereum holdings in April is terrifying. Which is why I consulted H&R Block’s cryptocurrency tax experts, as well as other financial experts, to help navigate these treacherous waters.

The more you talk to people about crypto, the more you understand that currently, this is a realm filled with hedges, guesswork, and theories. That opens up a lot of room for potential, as well as plenty of exposures.

With so much volatility, many that have remained on the sidelines might wonder why anyone would put their money into these assets. 

“If you look at the people with the most wealth, they start to say, ‘How can I diversify [my investments] even further, as not to see as many swings in my portfolio?'” says Marc Russell, a financial adviser. “For the average investor, when you start to think about diversification, I’m starting to think that crypto is a good way to go.

However, you do not want to put everything into crypto, because you do have that volatility.”

Russell, like many crypto agnostics, allocates only 10 percent of his portfolio to individual stocks and cryptocurrencies—essentially the “higher-risk” portion of his balance sheet.

That’s because, as finance folks and H&R Block’s own tax experts explain, crypto is still in its nascent form, and we do not yet know how the decentralized revolution will meld with global economic policy. But it’s likely only a matter of time.

Transactions involving cryptocurrency are taxable. Because tax reporting guidance is in its early stages for cryptocurrency, consumers may have questions about how to ensure they get it right.

For instance, one of the most fascinating things I learned when consulting with H&R Block’s crypto tax specialists is that as of right now, there aren’t any rules preventing investors from taking current tax losses on “wash sales” in regards to digital tokens.

In layman’s terms, a wash sale is when someone sells a security at a loss and immediately buys it back up within 30 days—artificially creating a tax deduction.

This practice is disallowed by the United States Tax Code for other assets. The loss from a wash sale is deferred until the replacement property is disposed of…but those same provisions haven’t carried over into crypto—emblematic of how murky so many crypto parameters are in 2022.

“The analysis is that wash sale rules apply to stocks and securities by law, but the IRS treats cryptocurrency as property,” says Megan Hurlbert, a Tax Research Analyst at H&R Block. “Because the wash sale disallowance rules are specifically limited to stocks and securities, they do not currently apply to cryptocurrency.” 

Frankly, the reporting challenges that digital currency has wreaked upon the tax filing process is truly profound.

The experts at H&R Block pointed out to me literally dozens of potential cryptocurrency transactions that could complicate your tax return.

For instance, if someone pays you for a service in Bitcoin, you will generally report that as wages or business income on your tax return. Then, you will have another reportable transaction when you sell that Bitcoin, at which point you gain or loss would generally be taxed like any other capital asset.

Do you enjoy working the DeFi markets every morning like a stock market? Make sure to keep a record of all of those transactions, because as Hurlbert says, “You need to have reliable records to prove how much you paid for each asset, how long you held the asset and how much gain or loss you incurred on the transaction.

Some exchanges will track most of that information for you, but the ultimate responsibility is yours to have proof of any gain or loss.” 

But it does feel like a singularity between fiat currency and blockchain coins is coming sooner than later. In New York City ATMs are equipped with the ability to cash out Bitcoin, and the country of El Salvador just adopted the currency as a nationally accepted tender.

One of the stumbling blocks a lot of people struggle with in crypto is the idea of encapsulating our hard-earned wages in an ethereal, intangible capital asset—rather than, you know, a summer cottage or a pile of Treasury bonds.

The solution to some of these anxieties is the much-hyped metaverse, which is a term at the tip of every Fortune 500 CEO’s tongue lately.

The idea is that in the near future, all of us will be frequently entering a parallel reality, defined by the digital ownership of goods, where cryptocurrency stands as the monetary system of record.

If that horizon comes to pass, suddenly crypto holdings will be rendered far more usable—in a traditional commercial sense—than they are right now. Russell was initially a metaverse skeptic, but lately, he’s found himself buying in.

“There’s a lot of unhappy people in the world. They feel stagnant. They don’t have the job they want, whatever it might be. There’s a lot of wants out there. Imagine being in a world where you get all of that, and you’re essentially playing The Sims with your life,” he says. “When I think about the growth rate of gaming in general—I read something the other day that there are more young boys who play games than those who play football and basketball combined—and if everyone is in [the gaming world,] capitalism will certainly play a part.”

“It goes back to your specific goals. If someone wants to reach their retirement goals, their education goals, or the goals they have for their children, and if they feel like they can reach those goals by investing in the S&P 500, then go for it. But if you want to get more returns, if your goals are more lavish,  you have to take on more risks,” he says. “That’s the way I would think about it. If it meets their goals, traditional investing is the way to go. But if they want to reach [different] predefined future goals, then I think it’s fine to take on a little more volatility, a little more risk.”■

[Culled from Vice]

Animoca Leads $10 Million Funding Round In Hong Kong NFT Platform Amid Crypto Craze

<SUNBIGHT>~Cryptocurrency~Orie~27th February,2022 @ 19:10 WAT

UCOLLEX, a Hong Kong-based NFT platform, has pulled $10 million fresh capital from local blockchain game developer Animoca Brands.

The startup’s latest funding round comes as sales of the digital collectibles are gaining ground in the city, which has seen an increasing number of projects launched over the past year. 

Another investor who also participated in the fundraising is MCP IPX One Fund, an investment fund established by the Japanese branch of MCP Asset Management and Animoca, according to a statement issued on Thursday.

Ucollex said the financing round values the company at $110 million. The new capital will be used to strengthen its team and its platform with the aim of delivering an experience that combines digital collectibles and entertainment through features such as virtual artwork battles, cofounder and CEO Robert Tran said in a written response.

“We believe there is still a lot to do to turn collectors from being passive supporters to becoming an integral and active part of the development process,” Tran added. “As long as more creators are emerging and content is growing at the pace that we have experienced in the last few years, there will be tremendous growth for Ucollex.”

NFTs—short for non-fungible tokens—are crypto assets that record the ownership of a digital item such as a piece of artwork, a photo or a video. Anyone can create, or “mint,” NFTs, by uploading their digital files to a blockchain that acts as a public ledger. 

Established in 2020 by Robert Tran and Raymond Hung, Ucollex is a marketplace that sells NFTs featuring toys and pop culture collectibles. Prior to the crypto business, Tran cofounded local watch brand Undone and iClick Interactive Asia, a marketing technology company listed on the Nasdaq. While Hung’s career includes a stint serving as the CTO of Undone as well as working at Microsoft Hong Kong for more than a decade.  

Last year, Ucollex teamed up with world’s largest crypto exchange Binance and British luxury fashion brand Jimmy Choo to launch a NFT collection. (Disclosure: Binance recently announced a strategic investment in Forbes.)

Yat Siu, cofounder and chairman of Animoca, said he believes his company’s latest investment in Ucollex will make it easier for intellectual properties to participate in the metaverse, according to the statement. 

Ucollex’s funding round underscores the increasing popularity of NFTs in Hong Kong, which has seen an increasing number of new projects emerged over the past year.

Among the successful launches are Shrooms, an NFT collection featuring three-dimensional mushroom avatars with Asian elements such as mahjong and red banners. The project said on its Twitter that all of its 3,888 NFTs were sold out within two minutes after its public launch in January. 

But as the emerging market for NFTs has grown, so too have reports of scams. Monkey Kingdom, a Hong Kong NFT project that has more than 23,000 followers on Twitter, said it became the unwitting victim of theft in December.

Buyers of the NFTs lost 7,000 Solana tokens, which translates to about $1.3 million at the time, after a hacker infiltrated the project’s group chat and posted a phishing link, which was used to steal personal data and gain access to their accounts. Monkey Kingdom said it had launched a fund to compensate the victims for some of their losses.■

[Courtesy: Zinnia LEE// Forbes]

Bill to legalise Bitcoin passes final reading in Ukraine

<SUNBIGHT>~Ukraine~Eke~18th February,2022 @ 21:47 WAT

UKRAINE has become the latest country to legalise Bitcoin after its parliament approved a bill in its final reading.  

On Thursday, the parliament passed the new Law of Ukraine on Virtual Assets with 270 votes.

“The new law is an additional opportunity for business development in our country. Foreign and Ukrainian crypto companies will be able to operate legally, and Ukrainians will have convenient and secure access to the global market for virtual assets,” Mykhaylo Fedorov, Ukrainian minister of digital transformation, said in a statement.

However, the country has not made the digital asset a legal tender.

The bill details requirements that Bitcoin service providers such as exchanges should abide by and determines fines for violations of the law’s provisions, in addition to determining that the country’s National Securities Commission regulate the cryptocurrency market.

The statement added that the commission would be responsible for issuing permits to Bitcoin and cryptocurrency service providers, carrying out supervision and financial monitoring of the market. 

Last September, Ukraine’s President Volodymyr Zelensky had vetoed a similar bill on cryptocurrencies, saying the country could not afford to create a new regulatory body specifically for Bitcoin and cryptocurrency.

However, the bill was returned to the Ukrainian parliament with Mr Zelensky’s suggestion to let existing regulators oversee the sector. 

Now, parliament has incorporated his recommendations and passed the amended bill.■

[Courtesy: News Agency of Nigeria]

Ray Dalio: Bitcoin and Crypto Get ‘Too Much Attention’

<SUNBIGHT>~Cryptocurrency~Afor~4th February,2022.

THE Bridgewater Associates founder opined on risks, both economic and political, in a recent interview.

In brief

  • Ray Dalio is the founder of hedge fund firm Bridgewater Associates and one of the world’s richest people.
  • He remains fairly skeptical of cryptocurrency as an investment.

He’s at it again. 

Ray Dalio, arguably the most famous hedge fund manager in the world, indicated he’s not putting too much faith in cryptocurrency as a hedge for anything.

In an interview on “The David Rubinstein Show” on Bloomberg, Dalio reiterated that he thinks some governments will outlaw cryptocurrencies such as Bitcoin—a point on which he’s been proven correct—and implied that its market capitalization is too large. He also lumped the asset class’s most fervent proponents in with goldbugs. “So, I think too much attention is spent on crypto,” he said.

But Dalio, one of the globe’s wealthiest men, does find digital assets “interesting”—and again admitted to holding a small amount in his diversified portfolio. “I think that we’re now in an area where we’re going to have different types of money,” he said while discussing the unbundling of currency as a medium of exchange and a storehold of wealth.

Despite his bearishness on crypto’s prospects, Dalio does have some things in common with American Bitcoiners. For one, he thinks the Fed has been too slow to rein in monetary policy. For another, he’s genuinely worried about the economic and political future.

“I think that in the 2024 elections there is a reasonable chance that neither party will accept losing the elections,” he said. “And that is something that means that democracy or a type of civil war of sorts could develop in a way.”

In short, Dalio sees risk everywhere. Crypto, for example, is “vulnerable” to government tracking. The U.S. is susceptible to a political meltdown. And the Fed could have their timetable all wrong.

For those concerned that their BTC will become worthless in a dystopian hellscape with Jerome Powell as Supreme Overlord, it’s important to realize that Ray Dalio is more probabilistic in his thinking; he avoids dealing in absolutes. 

That said, Bridgewater Associates, the firm he founded, hasn’t been making profitable bets of late. It posted negligible gains in its flagship funds in 2019, followed by $12 billion in losses in 2020.

In 2021, the firm restructured, so that Dalio now serves as co-chairman and co-chief investment officer, splitting investment decisions with co-CIOs Bob Prince and Greg Jensen.■

[Courtesy: Jeff BENSON / Decrypt]