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Ray Dalio warns that money is in danger and favors inflation-linked cryptocurrencies

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  • Bridgewater Associates founder Ray Dalio has warned of an impending currency crisis.
  • “We are in a world where money as we know it is in jeopardy,” Dalio told CNBC. “We’re printing too much, and it’s not just in the United States.”
  • He added that a better option for a digital currency is an inflation-linked token.

Bridgewater Associates founder Ray Dalio warned Thursday of an impending currency crisis and that an inflation-linked cryptocurrency would be safer than bitcoin.

in a interview with CNBCHe claimed that the largest cryptocurrency by market capitalization “has nothing to do with it” and denounced views that bitcoin is a safe store of value.

“It’s a small thing that gets disproportionate attention,” Dalio said. “It’s not going to be cash. It’s not an actual store of wealth. It’s not an effective medium of exchange.”

But Dalio pointed to the fiat currencies that dominate foreign reserves as the real cause for concern, particularly the US dollar, euro and Japanese yen.

“We are in a world where money as we know it is in jeopardy,” Dalio said. “We’re printing too much, and it’s not just in the United States.

He also noted that China’s push to trade the yuan and promote its digital renminbi will make them more widely used.

President Xi Jinping recently visited the Middle East to promote the yuan in oil deals, threatening the status of the US dollar as the main currency in commodity trade.

“If Saudi Arabia sells oil in renminbi and then buys things from China in renminbi, when they get it, they will have more renminbi, it will be a higher percentage of their [reserves]Dalio said. “The question in the next few years is really what money is, not just as a medium of exchange but as a store of wealth.”

While Bitcoin has been touted as the future of currency, he said that it is too unstable. And stablecoins, which have been pegged as more secure than bitcoin, are also basically fiat currencies, he added.

The best would be an inflation-linked currency that can guarantee purchasing power, Dalio said.

“If you created a coin that says ‘OK, this is purchasing power that I know I can save and put my money over for a period of time and transact,’ then I think that would be a good coin,” he said. “So I think you’ll see coins develop that you haven’t seen and they’ll probably end up being attractive and viable coins. I don’t think Bitcoin is.”

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