Fiat is in 'jeopardy' but Bitcoin, stablecoins aren't the answer either: Ray Dalio

cointelegraph.com:

Billionaire investor Ray Dalio has described fiat currency as being in serious “jeopardy” as an effective store of wealth but doesn’t believe Bitcoin (BTC) and stablecoins will be the solution either.

Dalio, the founder of hedge fund firm Bridgewater Associates explained on CNBC Squawk Box on Feb. 2 that the mass money printing of the United States Dollar and other reserve currencies has him questioning whether they are forms of “effective money.”

However, Dalio was quick to add his thoughts on whether Bitcoin was a potential solution, acknowledging that despite what it has accomplished in “12 years,” it is still too volatile to serve as money:

"It's not going to be an effective money. It's not an effective store holder of wealth. It's not an effective medium of exchange," he argued.

He also dismissed stablecoins as an effective form of money as it is a replica of state-backed fiat currency.

Instead, Dalio proposed the creation of an “inflation-linked coin” that would serve to ensure consumers secure their buying power.

“The closest thing to that is an inflation index bond, but if you created a coin that says OK this is buying power that I know I can save in and put my money in over a period of time and transact in anywhere, I think that would be a good coin,” he said.

"#Bitcoin has no relation to anything. It's a tiny thing that gets disproportionate attention," says @RayDalio on #crypto. "The value of $BTC is less than 1/3 of $MSFT stock. It's not an effective store of wealth. But we are in a world where money as we know it is in jeopardy." pic.twitter.com/Cc7o2TwkxG

"So I think you're going to see the development of coins that you haven't seen that probably will end up being attractive, viable coins. I don't think Bitcoin is