Billionaire Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, says it’s not possible for the price of bitcoin to reach a very high number, like $ 1 million. He explained, “Logically… there is a limitation on its price compared to other things like that.
Ray Dalio on the direction of the price of bitcoin
Bridgewater Associates founder Ray Dalio shared his take on where he thinks the price of bitcoin could reach in an interview with Lex Fridman, published on Saturday. Dalio is currently President and Co-Chief Investment Officer of Bridgewater Associates. His firm’s clients include endowments, governments, foundations, pensions and sovereign wealth funds.
The boss of Bridgewater was asked if he thought it was possible for the price of bitcoin to reach a very high number, like $ 1 million. Dalio quickly responded:
I don’t think that’s possible.
“The way I see it is that there is a certain amount of it [bitcoin] and there is a certain amount of gold, ”he said. “I will use gold as a benchmark,” he added, noting that bitcoin’s market cap is currently around $ 1 trillion and that the market cap of the entire crypto market is. of about $ 2.2 trillion.
“If you take the amount of money in gold that is not used for jewelry purposes and not used by central banks – and I’m assuming bitcoin will not be used for jewelry or central banking purposes – this amount of gold is about $ 5 trillion, “he explained.” So right now if you were to have a wallet that had gold and… bitcoin in it, it’s worth around 20% of the value of gold. “
The billionaire stressed that he doesn’t think bitcoin will be worth more than gold. “I think 20% seems a bit tight,” he said but admitted, “I really don’t know what the correct answer is. “
The founder of Bridgewater concluded: “If you use gold as a measure, it doesn’t make sense that it is used much more. While admitting he is “not sure about anything,” Dalio said:
Logically, it seems to me that there is a limitation on its price compared to other things like this.
Dalio previously revealed that he has a small amount of crypto in his portfolio for diversification. Regarding bitcoin, he said, “I think it’s very impressive that over the last 10, 11 years this programming has always held up. It hasn’t been hacked and so on, and it has an adoption rate.
Some people disagree with Dalio on where the price of bitcoin could reach. Microstrategy CEO Michael Saylor, for example, expects the price of BTC to continue to climb against the dollar. The pro-bitcoin executive specifically mentioned that it could hit $ 600,000 and then $ 6 million per coin in the future.
What do you think of Ray Dalio’s prediction and comments? Let us know in the comments section below.
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