Billionaire Ray Dalio Sees Limitation on Bitcoin’s Price, Doubts BTC Can Reach $1 Million – Markets and Prices Bitcoin News

Billionaire Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, says it’s not possible for the price of bitcoin to reach a very high number, such as $1 million. He explained: “Logically … there’s a limitation on its price in relationship to other things like it.”

Ray Dalio on The Price of Bitcoin: What’s the Future?

Ray Dalio, founder of Bridgewater Associates shared his views on the potential price that bitcoin might reach. This interview was published by Lex Fridman. Dalio currently serves as Bridgewater Associates’ chairman and co-chief investment officer. His firm’s clients include endowments, governments, foundations, pensions, and sovereign wealth funds.

Bridgewater’s boss was asked if he believes it is possible to have bitcoin reach $1 million in price. Dalio quickly replied:

I don’t think that’s possible.

“The way I look at it is there’s a certain amount of it [bitcoin] and there is a certain amount of gold,” he elaborated. “I’ll use gold as a benchmark,” he added, noting that the market cap of bitcoin is currently about $1 trillion and the market cap of the entire crypto market is about $2.2 trillion.

“If you take the amount of money that is in gold that is not used for jewelry purposes and not used by central banks — and I assume bitcoin won’t be used for jewelry purposes or central bank purposes — that amount of gold is about $5 trillion,” he explained. “So right now if you were to have a portfolio that has gold and … bitcoin, it’s worth about 20% of the value of gold.”

According to the billionaire, bitcoin won’t be valued more than gold. “I think that 20% sounds kind of about right,” he affirmed but admitted, “I really don’t know what the right answer is.”

The Bridgewater founder concluded, “If you use gold as a measure, it just makes no sense that it’s going to be used that much more.” While admitting that he is “not sure about anything,” Dalio said:

Logically it seems to me that there’s a limitation on its price in relationship to other things like it.

Dalio revealed previously that he holds a little bit of cryptocurrency in his portfolio to diversify. Regarding bitcoin, he said: “I think it’s very impressive that, for the last 10, 11 years, that programming has still held up. It hasn’t been hacked and so on, and it has an adoption rate.”

Dalio isn’t the only one who doubts that bitcoin can reach a high price. For example, Microstrategy CEO Michael Saylor expects that bitcoin will continue to rise against the dollar. Pro-bitcoin executives specifically stated that the price could rise to $600,000. Then, it would reach $6 million per coin.

What do you think about Ray Dalio’s prediction and comments? Please comment below.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. He is interested in Bitcoin security and open-source software, network effects, and the intersection of cryptography and economics.

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