Billionaire Ray Dalio, founding father of the world’s largest hedge fund Bridgewater Associates, says it’s not attainable for the value of Bitcoin to achieve a really excessive worth like $ 1 million. He defined, “Logically … there’s a restrict on the value in relation to comparable issues.”
Ray Dalio on the event of the Bitcoin value
Bridgewater Associates founder Ray Dalio, in an interview revealed Saturday with Lex Fridman, shared his view on how excessive he thinks the value of Bitcoin might attain. Dalio is at the moment the chairman and co-chief funding officer of Bridgewater Associates. His agency’s shoppers embody foundations, governments, foundations, pensions and sovereign wealth funds.
The Bridgewater boss was requested if he thought it attainable that the Bitcoin value might attain a really excessive worth, say, $ 1 million. Dalio promptly replied:
I don’t consider that’s attainable.
“The way in which I take a look at it, there’s a specific amount of it [bitcoin] and there’s a specific amount of gold, ”he defined. “I will be utilizing gold as a benchmark,” he added, noting that the market cap of Bitcoin is at the moment round $ 1 trillion and the market cap of the overall crypto market is round $ 2.2 trillion.
“In case you take the amount of cash in gold that isn’t used for jewellery or central banks – and I’m assuming Bitcoin shouldn’t be used for jewellery or central banking – that quantity of gold is about $ 5 trillion,” he defined . “So proper now in case you have a portfolio that accommodates gold and … bitcoin, it is price about 20% of the gold’s worth.”
The billionaire emphasised that, in his opinion, Bitcoin is not more than gold. “I feel 20% sounds about proper,” he confirmed, however admitted, “I actually do not know what the right reply is.”
The Bridgewater founder concluded, “If you use gold as a measure, it simply would not make sense for it for use a lot anymore.” Whereas admitting that he was “undecided about something,” Dalio stated:
Logically, it appears to me that the value is proscribed in relation to different comparable issues.
Dalio beforehand introduced that he has a small quantity of crypto in his portfolio for diversification. Concerning Bitcoin, he stated: “I discover it very spectacular that the programming has nonetheless held up over the previous 10 or 11 years. It hasn’t been hacked and so forth, and it has an adoption fee. “
Some individuals disagree with Dalio about how a lot the value of Bitcoin could possibly be. For instance, Microstrategy CEO Michael Saylor expects the value of BTC to proceed to rise in opposition to the greenback. The professional-bitcoin supervisor particularly talked about that it might hit $ 600,000 after which $ 6 million per coin sooner or later.
What do you consider Ray Dalio’s prediction and commentary? Tell us within the remark part beneath.
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