Billionaire Ray Dalio Sees Limitation on Bitcoin’s Price, Doubts BTC Can Reach $1 Million

Billionaire Ray Dalio Sees Limitation on Bitcoin’s Price, Doubts BTC Can Reach $1 Million

Billionaire Ray Dalio Sees Limitation on Bitcoin's Price, Doubts BTC Can Reach $1 Million

Billionaire Ray Dalio, the founding father of the world’s largest hedge fund, Bridgewater Associates, says it’s not potential for the worth of bitcoin to achieve a really excessive quantity, akin to $1 million. He defined: “Logically … there’s a limitation on its worth in relationship to different issues prefer it.”

Ray Dalio on Where the Price of Bitcoin Is Heading

Bridgewater Associates founder Ray Dalio shared his view on how excessive he thinks the worth of bitcoin might attain in an interview with Lex Fridman, revealed Saturday. Dalio at the moment serves as Bridgewater Associates’ chairman and co-chief funding officer. His agency’s shoppers embrace endowments, governments, foundations, pensions, and sovereign wealth funds.

The Bridgewater boss was requested whether or not he thinks it’s potential for the worth of bitcoin to achieve a really excessive quantity, akin to $1 million. Dalio promptly replied:

I don’t suppose that’s potential.

“The method I have a look at it’s there’s a certain quantity of it [bitcoin] and there’s a specific amount of gold,” he elaborated. “I’ll use gold as a benchmark,” he added, noting that the market cap of bitcoin is at the moment about $1 trillion and the market cap of all the crypto market is about $2.2 trillion.

“If you are taking the amount of cash that’s in gold that isn’t used for jewellery functions and never utilized by central banks — and I assume bitcoin received’t be used for jewellery functions or central financial institution functions — that quantity of gold is about $5 trillion,” he defined. “So proper now if you happen to had been to have a portfolio that has gold and … bitcoin, it’s value about 20% of the worth of gold.”

The billionaire emphasised that he doesn’t suppose bitcoin will probably be value greater than gold. “I believe that 20% sounds sort of about proper,” he affirmed however admitted, “I actually don’t know what the proper reply is.”

The Bridgewater founder concluded, “If you utilize gold as a measure, it simply is senseless that it’s going for use that rather more.” While admitting that he’s “undecided about something,” Dalio mentioned:

Logically it appears to me that there’s a limitation on its worth in relationship to different issues prefer it.

Dalio beforehand revealed that he has a small quantity of crypto in his portfolio for diversification. Regarding bitcoin, he said: “I believe it’s very spectacular that, for the final 10, 11 years, that programming has nonetheless held up. It hasn’t been hacked and so forth, and it has an adoption fee.”

Some individuals disagree with Dalio about how excessive the worth of bitcoin might attain. Microstrategy CEO Michael Saylor, for instance, expects the worth of BTC to maintain climbing in opposition to the greenback. The pro-bitcoin govt particularly mentioned that it might attain $600,000 after which $6 million a coin sooner or later.

What do you consider Ray Dalio’s prediction and feedback? Let us know within the feedback part beneath.

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