Author: Chris Lion

Ray Dalio, the American investor and founder of Bridgewater Associates, the world’s largest hedge fund, revealed that he prefers investing in bitcoin (BTC) and gold over debt assets. As the investment chief of Bridgewater Associates, the billionaire values these assets for their status as “hard money.”

In contrast, debt assets such as bonds should be avoided, as major economies are likely to encounter debt crises in the coming years, which could significantly reduce their value. It is the degree to which a company has used debt to finance its assets.

Hard money is a currency supported by a tangible asset, such as gold, silver, or bitcoin, valued for its stable and limited supply.

“I believe that there would likely be a pending debt money problem. I want to steer away from debt assets like bonds and debt and have some hard money like gold and bitcoin,” Dalio said in a speech during the Abu Dhabi Finance Week (ADFW) in the United Arab Emirates.

BTC and Gold Preferred Over Debt Assets

According to a report, the American investor noted that most major economies, including the United States and China, but excluding Germany, are experiencing a rapid rise in debt to historically high levels. He warned that these unsustainable debt levels could lead to significant financial challenges in the future.

Following the speech, Dalio elaborated that factors like debt, money, the economy, natural events, and technological advancements are the primary forces shaping the world. Political dynamics within nations and external geopolitical developments also play a significant role. His preference for bitcoin and gold suggests he views these assets as the most reliable options for preserving wealth amid the shifting impact of these global forces.

“Don’t get too caught up on the twists and turns of the day-to-day headlines, and instead, think more about the big force. Think strategically as well as tactically, taking a global perspective while recognising that what you don’t know about the future is more than what you do know,” he added.

BTC Surpasses Dalio’s Expectations

In line with Dailo’s recommendations, the billionaire further noted that gold and bitcoin have been trading close to record highs as investors turn to them as hedges against economic uncertainty, geopolitical conflicts, and new monetary policies.

The leading crypto asset surpassed the $100,000 price mark for the first time last week. However, the asset declined and hovered around $94,000 to $98,000. As of the time of writing, BTC has started recovering from the pullback, changing hands at over $100,700, up 5.58% over the past 24 hours.

Dailo also stated that an effective investment strategy should incorporate diversification and adaptability to navigate potential risks and capitalize on emerging opportunities.

Popular United States-based Bitcoin mining company MARA Holdings has announced the acquisition of 11,774 BTC, valued at over $1 million, through the proceeds from its 0% convertible notes offerings.

According to an official report, MARA acquired the asset for $96,000 per bitcoin and has achieved a BTC Yield of 12.3% QTD and 47.6% YTD. The purchase has further cemented the mining firm as one of the big players in the crypto sector. The miner currently holds 40,435 BTC, worth approximately $3.9 billion.

MARA Buys The Dip

The latest purchase came amid a BTC price dip, which fell from a record high of over $103,000 to below $99,000. MARA Holdings is capitalizing on the lower price point to boost its crypto asset portfolio. The company’s decision aligns with the strategy adopted by institutional investors, who view downturns as opportunities to accumulate assets at discounted rates.

Bitcoin has faced pullbacks in recent weeks, driven by market activities. However, the asset’s resilience continues to attract attention, particularly from institutional players who recognize its potential as a long-term investment strategy.

The acquisition also shows increasing corporate and institutional interest in digital assets, which has accelerated in recent years. MARA Holdings’ investment adds to the narrative of Bitcoin’s mainstream acceptance as a legitimate asset class.

Bitcoin As a Reserve Asset

Over the past year, other Bitcoin mining companies like Riot have invested significantly in the crypto asset. For instance, on December 9, 2024, the firm plans to raise $500 million from senior convertible note sales. The firm stated that the offering would occur through a private offering. The cash raised will be injected into its BTC stash. This move further cements the mining firm’s belief in the leading crypto as a long-term investment strategy.

With the alarming rise in bitcoin investment, corporations like MicroStrategy have gone deep into their pockets. The business intelligence company recently purchased 21,550 BTC for approximately $2.1 billion. The acquisition, executed at an average price of $95,976, brings its total Bitcoin holdings to 423,650 BTC, valued at around $42 billion. With this big buy, the company now boasts over 2% of the Bitcoin supply.

As such, MicroStrategy’s co-founder, Michael Saylor, urged the United States to sell all the gold held in its reserve worth around $500 billion and convert to a strategic Bitcoin reserve, acquiring the crypto as a store of value for the country.

Saylor noted that Bitcoin is establishing itself as the global reserve asset framework, and many professional and institutional investors are recognizing its potential for long-term growth and are actively moving to incorporate it as a foundational reserve holding.

Fidelity Investments, one of the world’s largest asset management firms, has doubled down on its commitment to crypto by adding over $196 million in Bitcoin (BTC) to its holdings.

Over $19.3B in Total Holdings

According to a recent X post, the latest acquisition moved the asset manager’s position as one of the top dogs in the crypto space, with bitcoin forming a core component of its long-term investment strategy. As of December 6, 2024, Fidelity holds 199,237 BTC, valued at over $19.3 billion.

The move also comes as BTC prices hover around $97,400, recovering from their recent dip to $94,000. However, the crypto asset performed highly in the last week, surpassing the $100,000 price mark. As such, both institutional and retail investors gained from the asset’s milestone.

Fidelity Investments has played a significant role in promoting the integration of crypto assets into traditional investment strategies and has steadily expanded its involvement in crypto services since its launch.

Institutions Buying BTC

Fidelity isn’t alone in seizing the opportunity presented by recent market downturns. For instance, the world’s largest asset management firm, BlackRock, accumulated 12,272 BTC worth $742 million.

Since September 24, the asset manager has resumed purchasing BTC, bringing its total holdings to over 369,822 BTC, worth around $23.2 billion. The accumulation reflects the manager’s increasing confidence in the crypto asset’s long-term potential.

Other institutions have also joined the crypto investment bandwagon. The publicly traded company MicroStrategy recently purchased 21,550 BTC for approximately $2.1 billion. The acquisition, executed at an average price of $95,976, brings its total Bitcoin holdings to 423,650 BTC, valued at around $42 billion. With this big buy, the company now boasts over 2% of the Bitcoin supply.

Bitcoin mining and digital infrastructure company Riot Platforms plans to raise $500 million from senior convertible note sales. The firm noted that the offering would occur through a private offering. The cash raised will be used to acquire more bitcoins, solidifying its position as one of the big players in the crypto sector.

As bitcoin continues to win the hearts of investors and institutions, MicroStrategy’s co-founder and American entrepreneur Michael Saylor urged the United States to sell all the gold held in its reserve worth around $500 billion and switch to a strategic Bitcoin reserve, acquiring the crypto as a store of value for the country, as Central American El Salvador did.

Saylor noted that the US could acquire around five million BTC using the proceeds from its gold reserves, positioning itself as the largest recognized national holder of Bitcoin, overseeing roughly 24% of the entire Bitcoin supply.

Bitcoin, the leading cryptocurrency by market capitalization, has ignited new debate as Peter Schiff, an American stock broker, financial commentator, and radio personality. He is the CEO and chief global strategist of Euro Pacific Capital Inc. and claims that Bitcoin (BTC) represents a national security risk to the United States.

According to an X post, Schiff noted that BTC is the public’s number one enemy, and government officials lavish public funds to purchase the crypto asset. 

“Bitcoin has become a national security threat. It’s one thing when private citizens voluntarily waste their money buying Bitcoin. But it crosses the line when they bribe government officials to squander the public’s money buying it. Bitcoin is now public enemy number one,” says Schiff.

Schiff Criticizes BTC as a National Security Risk

The Bitcoin critics and former US Senate candidate from Connecticut likely alluded to the crypto strategic asset reserve initiative backed by Donald Trump and prominent figures in his faction of the Republican Party.

While addressing the Bitcoin Conference in July and campaigning for a second term in the White House, the president-elect declared, “If I am re-elected, my administration’s policy will ensure that the United States retains 100% of all Bitcoin currently held or acquired by the government moving forward.”

Trump also told the attendees at the conference in Nashville, Tennessee, never to sell their bitcoins. Meanwhile, Trump was the first presidential candidate to accept Bitcoin donations for his campaign.

Wyoming Senator Cynthia Lummis also proposed that the US government should actively accumulate more bitcoin to establish a strategic BTC reserve fund. In contrast, Schiff contends that Bitcoin poses a significant threat to America’s interests.

BTC as Top Reserve Asset

The global hedge fund strategist’s statement came amid increasing global interest in Bitcoin and other cryptocurrencies, with many investors, institutions, and even countries exploring their potential.

On October 30, Florida Chief Financial Officer Jimmy Patronis (CFO) pushed to include BTC in state pension funds. If implemented by the State Board of Administration (SBA), Florida will join a growing number of American states like Wisconsin and Michigan, which have added crypto assets to their portfolios.

Amazon’s (AMZN) shareholders also recently urged the company to invest at least 5% of its assets in Bitcoin. If approved, Amazon will join MicroStrategy in diversifying its reserves into BTC. 

Meanwhile, the crypto asset is changing hands at above $94,400 after hitting and surpassing the $100,000 mark, fueling optimism for institutional and retail investors.