Philanthropist and billionaire Ray Dalio sees a bleak picture for the U.S. economy and the world at large due to the SARS CoV-2 coronavirus pandemic and COVID-19 disease. The founder of the Bridgewater Associates mutual fund predicted a collapse, not just a recession, which will take a long time to recover.
The executive felt that the current panorama is much more complex than that of the Economic and financial crisis in 2008 when US gross domestic product (GDP) fell 4.3% Due to the collapse of the real estate market, Bitcoin later emerged as the first cryptocurrency.
Dalio compared what is currently happening to the almost paralyzed economies and rising unemployment with what happened in the United States between 1929 and 1933, the so-called Great Depression, one of the greatest economic crises in history with a decline in GDP in the 30th % and unemployment close to 25% over a three year period.
What does corona virus mean for the global economy during a lecture organized by TED Connects? Dalio highlighted the following:
This is not a recession, this is a breakdown. You see the same thing as in the 1930s (…). We won’t be the way we were before. I think it could look like a tsumani if it hits, “said the spokesman.
In his considerations, Dalio did not mention Bitcoin as a possible alternative to protect himself in the current situation, but he noted that in order to be successful, an investor needs to know how to diversify the available funds.
Regarding the measures that governments like Donald Trump have announced to minimize the impact of the corona virus on the economy, Dalio was clear when he said that as in the past Apply the same decisions that include printing money, 0% interest rates, and bailout plans.
In the past, Dalio has also referred to Bitcoin, which he questions about its volatility. In January of this year, the executive stated that the money has two purposes: a medium of exchange and as a store of value: “Bitcoin is currently not effective in any of these cases,” he was quoted by CNBC.
Dalio’s intervention was commented on by cryptocurrency market analyst Willy Woo expressed: «It is interesting to see that Ray Dalio believes that this is a change in the long-term debt cycle, which it defines as a restart (which takes place every 70 years) that implies a change in monetary structure, the last one after World War II when the dollar became the reserve currency. “
CryptoNews published an analysis last week by Woo himself, who despite Dalio’s position suggested that Bitcoin would have Safe Haven Safe Haven properties. Woo came to this conclusion by comparing the sharp decline in international markets to that of cryptocurrencies on March 12th, which BTC managed to withstand the decline better than other markets.
Another positive sign for cryptocurrencies is that trading volume grew 61% in the first quarter of 2020. In addition, market analysts found in a report on Bitcoin’s behavior that while the main cryptocurrency is an oasis of value, it is not the most reliable.