Billionaire Ray Dalio, the founding father of the world’s largest hedge fund, Bridgewater Associates, says it’s not potential for the value of bitcoin to achieve a really excessive quantity, resembling $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 Value 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 presently serves as Bridgewater Associates’ chairman and co-chief funding officer. His agency’s purchasers embrace endowments, governments, foundations, pensions, and sovereign wealth funds.
The Bridgewater boss was requested whether or not he thinks it’s potential for the value of bitcoin to achieve a really excessive quantity, resembling $1 million. Dalio promptly replied:
I don’t suppose that’s potential.
“The best way I have a look at it’s there’s a certain quantity 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.
“For those who take the sum of money that’s in gold that’s not 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 in case you had 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 can be price greater than gold. “I feel 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, “For those who use gold as a measure, it simply is senseless that it’s going for use that rather more.” Whereas admitting that he’s “unsure about something,” Dalio mentioned:
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 feel 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 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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