Ray Dalio, founder of Bridgewater Associates, one of the largest investment funds in the world, recently emphasized that Bitcoin (BTC) could be banned by states and drew reactions. The value of assets managed by Dalio exceeds $ 140 billion. This makes his statements about BTC suddenly resonate. Dalio made an interesting confession today, saying that there might be something he missed about Bitcoin.
I might be missing something about Bitcoin so I’d love to be corrected. My problems with Bitcoin being an effective currency are simple… (1/5)
— Ray Dalio (@RayDalio) November 17, 2020
Is Dalio wrong about Bitcoin?
Dalio responded to a statement about Caitlin Long, one of the industry’s best-known “Bitcoin advocates,” and the confession came in. It all started with the response of Preston Pysh, one of the well-known names in the industry, to Dalio’s tweet saying that “when two people believe different things, one of them is wrong. Here, Pysh actually cited Dalio’s recent negative statements about BTC, hinting that the billionaire name was wrong.
Following this, Ray Dalio’s silence led to criticism of his lack of knowledge on the subject. The billionaire manager responded to the tweet after these allegations.
The reasons why my billionaire name “does not believe” in Bitcoin
Stating that he might have been wrong about Bitcoin and overlooked something, Dalio listed the problematic aspects of the leading cryptocurrency as follows:
- Bitcoin is not a good exchange.
According to Dalio, BTC has a lot of volatility, which prevents many shops and sellers from using it.
- Bitcoin is also not a very good tool in terms of value preservation.
Dalio emphasized that Bitcoin is not good at long-term asset and value protection. According to the famous billionaire, the high level of volatility BTC has and the low correlation with the products it needs to buy in the future fail to protect the purchasing power of investors.
- Governments can ban Bitcoin and cryptocurrencies and make their use dangerous.
Dalio once again emphasized that if Bitcoin and cryptocurrencies become threatening or competing with government-controlled money, they can be legislated directly. This can put investors who want to use Bitcoin in a very dangerous situation, according to Dalio.
- Central banks, large institutional investors, businesses or multinational corporations will not use Bitcoin.
Dalio said that unlike gold, the world’s third largest reserve asset used by central banks, banks, large financial institutions, or companies could not imagine using Bitcoin. Stating that he has a margin of error about these articles, the billionaire investor also stated that he would be pleased to correct his statements in such a case.
BTC price is rising despite everything
The BTC / USD parity has risen above $ 17,800 as of press hour and continues to rise. If the BTC price has increased by more than 400% since the big crash in 2020, that is, since the drop in March, it seems that Dalio could be wrong at many points.