Cash will be useless in the next crisis What is the right strategy for investors to adopt, according to Wall Street legend Ray Dalio. The "sure" reaction of central banks and the need for ... something solid.

Our day started off in the best way. With a wide smile! Peter Schiff, which we mentioned two days ago, admitted in a recent tweet that he was not ultimately to blame for losing Bitcoin. Neither wallet nor any other imaginable scenario had been devised by those who rushed to justify it. He had confused the pin with the password!

As we have noted, however, this mistake is not decisive. You don't lose your money so easily. The key is to save or write down the special words, which are the actual security code. With them you can recover your wallet even if you steal it or forget your password, like Peter Schiff. But he neglected to do that too!

It's not bad to be negative about something. The bad starts when you're negative but you don't bother learning about it. Even worse is to mislead others because of your ignorance or half-love.

In cryptocurrencies there are some security rules that you must adhere to. They are not difficult, but they are different from what we know. The fact that they are not difficult is not arbitrary. Even the most novice, the most unrelated to technology. But attention, like all things, does not cease. Climbing the cliffs without knowing the basics, wearing swimsuits and flippers, will be the mountains to blame.

From the cheerful, let's get serious. In an interview yesterday in Davos, Ray Dalio, the Wall Street legend, said what? That 'cash is trash'.

What did he mean? When the next crisis arrives (which he thinks is approaching), the big question is what will we do to defend ourselves, even if we realize it in time. Selling them all and staying cash is not the solution. We now know how the authorities will react. The Central Banks will exaggerate them, putting ahead the "machines" and "printing" incessantly.

Therefore; What is the solution, according to Ray? Have a well-diversified portfolio. Balanced and shared with values ​​from around the world, which definitely contains gold. Something that is tough! Hard!

What other asset do we know that cannot be inflated like gold? You found it: Bitcoin. What does Ray say about this when asked? That he doesn't like Bitcoin, because it has great volatility.

Ray Dalio may be amazing at macroeconomic analysis, as evidenced by his investment results, but he has not figured out what Bitcoin is. How are we sure? Because he said right afterwards that if he preferred a cryptocurrency, that would be something like Libra, which is more stable. This is where his ignorance is revealed. Libra (if it comes out, which seems unlikely to date) is nothing more than a basket of currencies like the dollar, the euro, the yen. What a few minutes ago Dalio himself called "trash"!

Hopefully, however, we are at a point where investors are breaking their negative bias and realizing the rarity of Bitcoin. Especially younger people, who are more familiar with intangible, digital values, understand that this is the first digital object that cannot be copied. That by 2036 there will be 99% of the Bitcoin that will ever exist. That in 4 years the creation of new coins to the existing quantity will have the proportion of gold. And in 8 years, it will be rarer than gold itself.