Billionaire Ray Dalio Sees Limitation on Bitcoin’s Price, Doubts BTC Can Reach $1 Million

Billionaire Ray Dalio Sees Limitation on Bitcoin"s Price, Doubts BTC Can Reach $1 Million

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 Where the Price of Bitcoin Is Heading

Bridgewater Associates founder Ray Dalio shared his view on how high he thinks the price of bitcoin could reach in an interview with Lex Fridman, published Saturday. 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.

The Bridgewater boss was asked whether he thinks it is possible for the price of bitcoin to reach a very high number, such as $1 million. Dalio promptly 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.”

The billionaire emphasized that he does not think bitcoin will be worth 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 previously revealed that he has a small amount of crypto in his portfolio for diversification. 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.”

Some people disagree with Dalio about how high the price of bitcoin could reach. Microstrategy CEO Michael Saylor, for example, expects the price of BTC to keep climbing against the dollar. The pro-bitcoin executive specifically mentioned that it could reach $600,000 and then $6 million a coin in the future. Tags in this story bitcoin price prediction, BTC Price, Ray Dalio, Ray Dalio bitcoin, ray dalio bitcoin price prediction

What do you think about Ray Dalio’s prediction and comments? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. This Year"s Top 10 Crypto Asset Gainers Outshined BTC"s and ETH"s 12-Month Returns MARKETS AND PRICES | 11 hours ago Meme Token Economy Climbs 14% in 2 Weeks — DOGE, SHIB Command 83% Dominance MARKETS AND PRICES | 2 days ago

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