Billionaire Ray Dalio, the founding father of the world’s largest hedge fund, Bridgewater Associates, says it’s not doable for the value of bitcoin to achieve a really excessive quantity, equivalent to $1 million. He defined: “Logically … there’s a limitation on its worth 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 value of bitcoin might attain in an interview with Lex Fridman, revealed Saturday. Dalio at present serves as Bridgewater Associates’ chairman and co-chief funding officer. His agency’s shoppers embody endowments, governments, foundations, pensions, and sovereign wealth funds.
The Bridgewater boss was requested whether or not he thinks it’s doable for the value of bitcoin to achieve a really excessive quantity, equivalent to $1 million. Dalio promptly replied:
I don’t suppose that’s doable.
“The best way I take a look at it’s there’s a specific amount of it [bitcoin] and there’s a certain quantity of gold,” he elaborated. “I’ll use gold as a benchmark,” he added, noting that the market cap of bitcoin is at present about $1 trillion and the market cap of the complete crypto market is about $2.2 trillion.
“In the event you take 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 gained’t be used for jewellery functions or central financial institution functions — that quantity of gold is about $5 trillion,” he defined. “So proper now for those who have been to have a portfolio that has gold and … bitcoin, it’s price about 20% of the worth of gold.”
The billionaire emphasised that he doesn’t suppose bitcoin will probably be price greater than gold. “I believe that 20% sounds type of about proper,” he affirmed however admitted, “I actually don’t know what the correct reply is.”
The Bridgewater founder concluded, “In the event you use gold as a measure, it simply is unnecessary 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 worth 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 fee.”
Some individuals disagree with Dalio about how excessive the value of bitcoin might attain. Microstrategy CEO Michael Saylor, for instance, expects the value of BTC to maintain climbing in opposition to the greenback. The professional-bitcoin govt particularly mentioned that it might attain $600,000 after which $6 million a coin sooner or later.
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