Billionaire Ray Dalio Says Bitcoin Is Not an Effective Money, Store of Value or Medium of Exchange – Featured Bitcoin News

Billionaire Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, says it is “incredible” what bitcoin has achieved, but believes the cryptocurrency will not be an efficient money, store of value or medium of exchange. Nevertheless, he stressed that “we are in a world where money as we know it is at risk.”

Billionaire Ray Dalio on Bitcoin

Billionaire investor and hedge fund manager Ray Dalio, who founded the world’s largest hedge fund, Bridgewater Associates, and previously served as its co-chief investment officer, has given his views on bitcoin in an interview with CNBC on Thursday. Referring to the world’s largest cryptocurrency, he said:

I think it’s been pretty amazing that it’s been achieved for 12 years … But I think it’s unrelated to anything … It’s a little thing that gets disproportionate attention.

Noting that bitcoin’s total market capitalization is less than a third of Microsoft’s stock, whose market cap was $1.92 trillion on Friday, Dalio claimed, “Biotech and many other industries are more interesting than bitcoin.” The billionaire said:

It’s not going to be efficient money. It is not an efficient store of wealth. It is not an effective means of exchange.

“But we’re in a world where money as we know it is at risk … We’re printing too much, and it’s not just the US, all the reserve currencies,” he continued, citing problems with the euro and the Japanese yen. special. “And so in that world the question is, what is money and how will it work? So when we look at something like China’s renminbi, and then you take the digital renminbi, I think you’re going to see it become more and more of a thing,” Dalio shared.

The Bridgewater Associates founder emphasized, “if you want a digital currency, you have to do something else” than bitcoin. However, he noted, “I don’t think stablecoins are good because then you get a fiat currency again.” He added:

What would be best is an inflation linked coin. In other words, something where you basically want to say, okay, this is going to give me purchasing power because everyone wants. What do they want? They want to secure their purchasing power.

“The closest thing to that is an inflation index bond and so on,” Dalio said. “But if you created a coin that said, okay, this is purchasing power that I know I can save and put my money over a period of time, and then I can trade anywhere, I think that would be a good coin, ” he continued. “So I think you’re probably going to see the development of coins that you haven’t seen that are probably going to end up being attractive, viable coins. I don’t think bitcoin is.”

Many people disagree with Ray Dalio

After Dalio’s interview, many took to Twitter to disagree with him. Some people noted that Dalio was just describing bitcoin while others pointed out that Bitcoin has been around for more than 14 years, not 12 as the Bridgewater founder said.

“An ‘inflation-linked currency’ is nonsense,” commented bitcoin supporter Robert Breedlove. “Lesson for Ray Dalio: Money’s purchasing power is preserved through the integrity of its supply. Bitcoin has a perfectly integrated money supply of 21M. In the long run, bitcoin is the perfect money to preserve purchasing power over time.”

Gabor Gurbacs, strategy advisor at Vaneck/MVIS tweeted: “Ray Dalio is wrong about Bitcoin. I respect Ray’s work and like his books, but his comments on Bitcoin are under-researched and disappointing.” Gurbacs added:

Ray’s views particularly on the size, reach and significance of the bitcoin market are worrying. Tens of millions of people use bitcoin worldwide, especially in emerging markets. Bitcoin’s censorship resistance is changing.

Dalio used to have a more bullish view of bitcoin. In January 2021, he said: “I think bitcoin is one hell of an invention. Having invented a new type of money via a system programmed into a computer that has been working for about 10 years and is rapidly gaining popularity as both a type of money and a storehouse of wealth, is a wonderful achievement.” Last February, he confirmed that he has “a small percentage” of his portfolio in cryptocurrency.

Nonetheless, he has repeatedly warned that governments could ban bitcoin if the cryptocurrency “becomes material,” predicting that crypto will be “banned, probably by various governments.”

What do you think of the statements made by billionaire Ray Dalio? Let us know in the comments section below.

Kevin Helms

A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of economics and cryptography.