Billionaire Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, says it is not possible for the price of Bitcoin to reach a very high value like $ 1 million. He explained, “Logically … there is a limit on the price in relation to similar things.”
Ray Dalio on the development of the Bitcoin price
Bridgewater Associates founder Ray Dalio shared in an interview how high he thinks the price of Bitcoin could reach Lex Fridman, released on Saturday. Dalio is currently the chairman and co-chief investment officer of Bridgewater Associates. His firm’s clients include foundations, governments, foundations, pensions and sovereign wealth funds.
The Bridgewater boss was asked if he thought it possible that the Bitcoin price could reach a very high value, say, $ 1 million. Dalio promptly replied:
I do not believe that is possible.
“The way I look at it, there is a certain amount of it [bitcoin] and there is a certain amount of gold, ”he explained. “I’ll be using gold as a benchmark,” he added, noting that the market cap of Bitcoin is currently around $ 1 trillion and the market cap of the total crypto market is around $ 2.2 trillion.
“If you take the amount of money in gold that is not used for jewelry or central banks – and I am assuming Bitcoin is not used for jewelry or central banking – that amount of gold is about $ 5 trillion,” he explained . “So right now if you have a portfolio that contains gold and … bitcoin, it’s worth about 20% of the gold’s value.”
The billionaire emphasized that, in his opinion, Bitcoin is no more than gold. “I think 20% sounds about right,” he confirmed, but admitted, “I really don’t know what the correct answer is.”
The Bridgewater founder concluded, “When you use gold as a measure, it just doesn’t make sense for it to be used so much anymore.” While admitting that he was “not sure about anything,” Dalio said:
Logically, it seems to me that the price is limited in relation to other similar things.
Dalio previously announced that he has a small amount of crypto in his portfolio for diversification. As for Bitcoin, he said: “I find it very impressive that the programming has still held up over the past 10 or 11 years. It hasn’t been hacked and so on, and it has an adoption rate. “
Some people disagree with Dalio about how much the price of Bitcoin could be. Microstrategy CEO Michael Saylor, for example, expects the price of BTC to continue to rise against the dollar. Especially the pro bitcoin manager called that it could reach $ 600,000 and then $ 6 million coin in the future.
What do you think of Ray Dalio’s prediction and commentary? Let us know in the comment section below.
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Source: Crypto News Austria