Billionaire Ray Dalio, the founding father of the world’s largest hedge fund, Bridgewater Associates, says it’s not attainable for the worth of bitcoin to succeed in a really excessive quantity, corresponding 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 worth of bitcoin may attain in an interview with Lex Fridman, revealed Saturday. Dalio at the moment serves as Bridgewater Associates’ chairman and co-chief funding officer. His agency’s shoppers embrace endowments, governments, foundations, pensions, and sovereign wealth funds.

The Bridgewater boss was requested whether or not he thinks it’s attainable for the worth of bitcoin to succeed in a really excessive quantity, corresponding to $1 million. Dalio promptly replied:

I don’t assume that’s attainable.

“The way in which I have a look at it’s there’s a specific amount 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 at the moment about $1 trillion and the market cap of your entire crypto market is about $2.2 trillion.

“For those who take the amount of cash 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 should you 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 assume 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 fitting reply is.”

The Bridgewater founder concluded, “For those who 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 stated: “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 folks disagree with Dalio about how excessive the worth of bitcoin may attain. Microstrategy CEO Michael Saylor, for instance, expects the worth of BTC to maintain climbing in opposition to the greenback. The professional-bitcoin government particularly talked about that it may attain $600,000 after which $6 million a coin sooner or later.

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