Billionaire Ray Dalio, the founding father of the world’s largest hedge fund, Bridgewater Associates, says it’s not doable for the worth of bitcoin to succeed in a really excessive quantity, akin to $1 million. He defined: “Logically … there’s a limitation on its value in relationship to different issues prefer it.”
Ray Dalio on The place the Worth 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 presently 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 doable for the worth of bitcoin to succeed in a really excessive quantity, akin to $1 million. Dalio promptly replied:
I don’t suppose that’s doable.
“The best way I have a look at it’s there’s a specific amount 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 presently about $1 trillion and the market cap of the whole crypto market is about $2.2 trillion.
“In the event you take the sum of money 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 in case you have 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 shall 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 fitting reply is.”
The Bridgewater founder concluded, “In the event you use gold as a measure, it simply is senseless that it’s going for use that rather more.” Whereas admitting that he’s “undecided about something,” Dalio stated:
Logically it appears to me that there’s a limitation on its value in relationship to different issues prefer it.
Dalio beforehand revealed that he has a small quantity of crypto in his portfolio for diversification. Concerning 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 charge.”
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 professional-bitcoin government particularly mentioned that it might attain $600,000 after which $6 million a coin sooner or later.
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