Kevin Helms
Kevin, an Austrian economics student, discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection of economics and cryptography.
Billionaire Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, said what Bitcoin has achieved is “amazing,” but he doesn’t think cryptocurrencies will be effective money, stores of value or medium of exchange. Still, he stressed, “we’re in a world where money as we know it is at stake.”
Billionaire Ray Dalio on Bitcoin
Billionaire investor and hedge fund manager Ray Dalio, who founded the world’s largest hedge fund Bridgewater Associates and previously served as its co-chief investment officer, expressed his views on bitcoin in an interview with CNBC on Thursday. Speaking about the world’s largest cryptocurrency, he said:
I think it’s amazing how much it has achieved in 12 years…but I don’t think it has anything to do with it…it’s a small thing that gets too much attention.
Noting that Bitcoin’s total market capitalization is less than one-third that of Microsoft stock, which was valued at $1.92 trillion on Friday, Dalio asserted: “Biotech and many other industries are more interesting than Bitcoin.” The billionaire Rich thinks:
It’s not going to be an effective amount of money. It is not an effective store of wealth. It is not an effective medium of exchange.
“But we’re in a world where currencies as we know them are at risk … we’re printing too much, not just the U.S., all reserve currencies,” he continued, referring to the euro and The yen in particular is a problem. “So in that world, the question is, what is money, how is money going to work? So when we look at things like the Chinese yuan, and then you take the digital yuan, I think you’ll see it become more and more Important,” Dalio shared.
Bridgewater Associates founder emphasized that “if you want a digital currency, you have to do something different from Bitcoin”. However, he noted: “I don’t think stablecoins are good because then you get fiat money again.” He added:
Preferably an inflation pegged token. In other words, basically you’re saying, okay, this will give me buying power, because everybody wants it. what do they want They want to secure their buying power.
“The closest thing is inflation-indexed bonds and so on,” Dalio said. “But if you create a coin that says, well, this is the purchasing power of money that I know I can store and store money for a period of time, and then I can transact anywhere, I think that would be a good coins,” he continued. “So I think you might see the development of tokens that you’ve never seen before, and they might end up being attractive, viable tokens. I don’t think Bitcoin is it.”
Many disagree with Ray Dalio
After Dalio’s interview, many took to Twitter to disagree with him. Some pointed out that Dalio was only describing Bitcoin, while others pointed out that Bitcoin has been around for more than 14 years, not the 12 years mentioned by the Bridgewater founder.
“‘Inflation-linked currency’ is nonsense,” commented Bitcoin proponent Robert Breedlove. “Lesson from Ray Dalio: The purchasing power of money is maintained by the integrity of its supply. Bitcoin has a perfect money supply of 21 million. In the long run, Bitcoin is the perfect currency to maintain purchasing power over time. “
Gabor Gurbacs, strategic advisor at Vaneck/MVIS, tweeted: “Ray Dalio is wrong about Bitcoin. I respect Ray’s work and love his book, but his comments on Bitcoin are underresearched and disappointing.” Disappointed.” Gurbacs added:
Ray’s views on the size, scope and importance of the Bitcoin market are worrisome. Tens of millions of people around the world use Bitcoin, especially in emerging markets. Bitcoin’s censorship resistance is changing the game.
Dalio has been more bullish on Bitcoin in the past. In January 2021, he said: “I believe that Bitcoin is an amazing invention. A new type of money has been invented by a system programmed into a computer, which has been in operation for about 10 years and has served as a currency and wealth It’s a remarkable achievement.” Last February, he confirmed that “only a small portion” of his portfolio is in cryptocurrencies.
Nonetheless, he has repeatedly warned that governments could ban Bitcoin if cryptocurrencies “became important,” predicting that cryptocurrencies will “be outlawed, possibly by different governments.”
What do you think of billionaire Ray Dalio’s statement? Let us know in the comments section below.
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