Ray Dalio admits he could be wrong about Bitcoin, but is still worried about the government ban

Billionaire hedge fund manager Ray Dalio admitted he may be wrong about bitcoin after claiming governments will ban cryptocurrency if it “becomes material”. Dalio founded Bridgewater Associates; his hedge fund is the largest in the world.

Ray Dalio open to learning about Bitcoin

Bridgewater Associates founder Ray Dalio admitted he may be wrong about bitcoin after stating last week that he didn’t think cryptocurrencies “will be successful the way people hope.” He also said governments will outlaw bitcoin if it becomes material.

Dalio is an American billionaire hedge fund manager who founded Bridgewater Associates and has been its co-chief investment officer since 1985. His hedge fund is the largest in the world, with approximately $ 140 billion in assets under management. Dalio was called “Steve Jobs of Investing” by AICIO Magazine and Wired Magazine. He was also named one of the 100 Most Influential People by TIME magazine.

While the price of bitcoin has skyrocketed, rising about 55% over the past 30 days, Dalio tweeted on Tuesday:

I might lose something on bitcoin, so I’d like to be fair.

“My problems with bitcoin as an effective currency are simple,” he began pointing out his concerns in a series of tweets.

First, he said: “Bitcoin is not very good as a medium of exchange because you can[not] buy a lot with it (I assume it’s because it’s too volatile for most traders to use, but correct me if I’m wrong). “

Second, he said: “It is not very good as a store of wealth because its volatility is large and it has little correlation with the prices of what I have to buy, so owning it doesn’t protect my purchasing power.”

Next, he reiterated the risk of governments banning bitcoin which he outlined in an interview with Yahoo Finance last week. Dalio said that if bitcoin “becomes material, governments will not allow it.” He stressed: “They will outlaw it and use all their teeth to enforce it. They would say … you can’t transact with bitcoin, you can’t have bitcoin. “The billionaire fund manager tweeted the same way on Tuesday:

If it is successful enough to compete and threaten enough for government-controlled currencies, governments will outlaw it and make it too dangerous to use.

The founder of Bridgewater Associates further stated that “unlike gold, which is the third highest reserve assets owned by central banks, I cannot imagine central banks, large institutional investors, corporations or multinationals using it.”

Dalio concluded his series of tweets with “If I’m wrong about these things I’d like to be corrected. Thanks.”

Bitcoiners addressing Ray Dalio’s concerns

Many bitcoiners responded to Dalio’s tweets about bitcoins. Although the comments are different, some people have attempted to address Dalio’s three concerns in detail. One of them was Blockfi CEO Zac Prince, who addressed every point Dalio made against bitcoin as an effective currency.

Mythos Capital founder Ryan Sean Adams intervened, explaining that “Bitcoin-like assets are not meant to be an MoE, but a SoV to support digital stablecoins, similar to how gold once backed fiat. “. Addressing concern over Dalio’s government ban, he simply stated that “game theory forces central banks to keep it; MMT will force CBs into the digital realm. “

Capriole Investments founder Charles Edwards noted: “All new asset classes start at 0. Starting at 0 means there will be volatility to reach a high number. But if you zoom out, you put Bitcoin on a log chart, it’s almost as close to a straight line as possible. Means of exchange take time to be accepted by the population. Fact: You can use bitcoin debit cards to purchase goods anywhere in the world. “

Many answers simply point to Dalio at his own work explaining bitcoin or other popular resources. The official Twitter account of Fidelity Digital Assets wrote: “Mr. Dalio: Many of your bitcoin concerns are what we discuss every day with institutional investors at Fidelity Digital Assets. “

Some people see Dalio’s comments as a sign that he personally or his hedge fund will buy bitcoin soon. Abra CEO Bill Barhydt tweeted: “Does anyone want to bet Ray Dalio will make 180 on bitcoin in the next 6 months or sooner?” Lark Davis, aka The Crypto Lark, wrote:

I call it now, Ray Dalio and Bridgewater will buy bitcoin within the next few months.

What do you think of Ray Dalio’s point of view on bitcoin? Let us know in the comments section below.

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