Februar 27, 2024

Ray Dalio: Bitcoin Not Effective Money, Store of Value, or Medium of Exchange

• Billionaire Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, believes that Bitcoin is not an effective money, store of value or medium of exchange.
• He noted that bitcoin’s market value is less than a third of Microsoft’s stock and that it receives disproportionate attention compared to other industries like biotech.
• Dalio believes the best form of digital currency would be an inflation-linked coin that would secure individual buying power.

Billionaire Ray Dalio on Bitcoin:

Billionaire investor and hedge fund manager Ray Dalio recently spoke about bitcoin in an interview with CNBC Thursday. He stated that while he found its success over the last 12 years „amazing“, he does not believe it is suitable for a money, storevalue or medium of exchange.

Bitcoin’s Market Value Compared to Other Industries:

Dalio pointed out that bitcoin’s total market value is less than a third of Microsoft’s stock and received disproportionate attention compared to other industries like biotech. He argued this proves it is not going to be effective money in any way.

Money as We Know It Is In Jeopardy:

The billionaire investor asserted that we are living in a time where money as we know it is in jeopardy due to too much printing and problems with reserve currencies such as the euro and yen. He suggested that China’s renminbi or digital renminbi could replace current forms of money if people want a digital currency option instead.

Stablecoins Not Suitable:

Dalio did not think stablecoins were suitable because they are essentially just another fiat currency again. He proposed the best form of digital currency would be an inflation-linked coin which would secure individual buying power – something similar to an inflation index bond.

Conclusion:

In conclusion, while Dalio found bitcoin’s success amazing over the past 12 years, he does not believe it can effectively function as money, storevalue or medium of exchange – suggesting instead China’s renminbi or digital renminbi could replace current forms of money if people want a digital currency option instead. The best form of digital currency proposed by him was an inflation-linked coin which would secure individual buying power similar to an inflation index bond.