- Billionaire hedge fund manager Ray Dalio thinks Bitcoin (BTC) is an “incredible invention” that could potentially become a “store of wealth” like gold.
Billionaire hedge fund manager Ray Dalio thinks Bitcoin (BTC) is an “incredible invention” that could potentially become a “store of wealth” like gold.
Ray Dalio: Bitcoin (BTC) can be a “store of wealth” like gold
Ray Dalio, founder of Bridgewater Associates, has been skeptical of Bitcoin in the past and has made negative reviews. On Thursday, Ray Dalio published his opinion on the cryptocurrency in detail on the Bridgewater website, highlighting both the risk and potential of the biggest cryptocurrency. However, Ray Dalio points out that he is not a Bitcoin or cryptocurrency expert. Ray Dalio adds the following to his comments on the subject:
THERE IS NO GOLD-SIMILAR ASSETS IN THIS PERIOD WHERE NEEDS INCREASE (DUE TO ALL ONGOING AND FUTURE DEBT AND MONEY CREATION). THERE IS AN INCREASING NEED FOR ASSETS OF Wealth, Limited in Terms of Money or Supply, DUE TO WHAT IS FINISHED IN THE WORLD, ALSO THERE A INCREASING NEED FOR ASSETS THAT CAN BE HELD PRIVILY THERE ARE NOT MANY OF THESE GOLD-LIKE ASSETS THAT CAN BE KEPT WITHIN PRIVACY AND THE SIZE OF THEIR MARKETS ARE RELATIVELY SMALL, THERE IS THE POSSIBILITY TO MEET THIS INCREASING NEEDS OF BITCOIN AND ITS COMPETITORS. IT COMES TO ME THAT BITCOIN WILL BE WITH US FOR A LONG TIME AND PROBABLY SUCCESSED TO EXCEED THE LINE FOR ITS FUTURE VALUE.
Ray Dalio: a better cryptocurrency can replace Bitcoin
Despite acknowledging this potential, Ray Dalio thinks that future government pressure will pose serious risk to the coin. Ray Dalio adds the following to his comments on the subject:
I DOUBT THAT THE BITCOIN’S BIGGEST RISK IS TO BE SUCCESSFUL, BECAUSE THE GOVERNMENT WILL TRY TO KILL IT AND HAVE A LOT OF POWER TO BE SUCCESSFUL.
Also, Ray Dalio is evaluating the potential of new cryptocurrencies to replace BTC. The famous investor also does not believe the argument that Bitcoin’s scarcity guarantees its status as a store of value asset. Ray Dalio adds the following to his comments on the subject:
BECAUSE BITCOIN WORKS IS FIXED, I PREDICT IT WILL NOT IMPROVED AND A BETTER ALTERNATIVE WILL BE INVENTED AND EXCEEDED IT. I SEE THIS AS A RISK. FOR THESE REASONS, THE ‘LIMITED SUPPLY’ ARGUMENT IS NOT ACCURATE AS IT APPEARS.
Ray Dalio: I’m willing to invest in Bitcoin!
Ray Dalio also believes Bitcoin is at risk of being hacked. Still, the billionaire seems to be looking at the asset as a potential investment option. Ray Dalio adds the following to his comments on the subject:
THEREFORE, BITCOIN APPEARS TO ME AS A LONG-TERM OPTION IN A VERY UNKNOWN FUTURE AND I CAN PUT IN A SUMMARY OF MONEY I DO NOT HOPE TO LOSE 80%. THIS NON-EXPERT LOOK AT THIS BITCOIN. I HAVE BEEN FIXED TO BE CORRECTED AND LEARN MORE.