The two biggest cryptocurrencies by market capitalization, bitcoin and ethereum, have risen over the past month, each seeing a price increase of almost 40%.
For the first time since August, the price of a bitcoin has risen above $23,000, up from under $17,000 only a month ago. Ethereum has surpassed $1,600 per ether in the meantime as traders anticipate an impending upgrade.
The world is currently headed toward a currency crisis due to inflation, according to renowned billionaire Ray Dalio, the founder of the biggest hedge fund in the world, Bridgewater Associates. He also proposed an “inflation-linked” bitcoin and ethereum alternative that could maintain purchasing power.
Money as we know it is in danger in the world today, Dalio said in an interview. There is too much money being printed, and it’s not just in the US; it’s in all the reserve currencies.
Compared to other things, Dalio called bitcoin a little object that gets disproportionate attention. It won’t be money that will be useful. It does not serve as a reliable wealth holder. It is a poor means of exchange.
With the phrase “cash is trash,” Dalio has recently warned against storing dollars. He has also criticized traditional currency-pegged so-called stablecoins and advocated for the development of an “inflation-linked” form of bitcoin.
Over the past year, U.S. inflation has skyrocketed to a 40-year high, pushing the Federal Reserve to start raising interest rates.
He believes a good coin would be one that says, “OK, this is buying power that I know I can save in, put my money in over a period of time, and transact in,” according to Dalio. He believes we will witness the emergence of previously unknown coins that are likely to end up becoming desirable and successful coins. Bitcoin isn’t it, in his opinion.
After experiencing a severe drop through 2022, the price of bitcoin has since surged back in 2023.
