Bridgewater Associates founder Ray Dalio believes that it will be impossible for Bitcoin to ever reach the value of US$ 1 Million. He argues that there are other caps as well in Bitcoin such as its supply cap and even price cap.
Ray Dalio is amongst the top billionaires of the world. The reason for him being globally popular is because of ‘Bridgewater Associates, which is the biggest fund management company in the world. It was Dalio who had actually founded the world’s biggest fund management company himself.
On 25th December 2021, Dalio was interviewed by Lex Fridman. The interviewer asked him whether he believes in the predictions with regard to Bitcoin for say Bitcoin reaching US$ 1 Million value. In response, he quickly suggested that he doesn’t think that the prediction will ever become true. Not in this life at least, remarked Dalio.
Dalio explained that for him, Gold will always be the benchmark. He even cast doubts at Bitcoin replacing Gold. He argued that currently Bitcoin’s economy is over US$ 1 Trillion and the global crypto economy is over US$ 2.2 Trillion. He stressed that there is no comparison between the market caps of Bitcoin and Gold. But if only 10% of Gold is taken out from reserve and converted into cash, then it becomes multi-trillion dollars. He then suggested that Bitcoin will never be worth more than Gold. The far Bitcoin can get is to make up 20% of the Gold’s worth.
He commented further that he feels that limited coins aren’t the only cap in Bitcoin. In fact, there is more than one cap for instance the value of Bitcoin is also capped. So ultimately by no stretch of the imagination, he can even assume that Bitcoin will ever be a million-dollar asset or anything above that. But he feels no shame in acknowledging that Bitcoin is an impressive thing which he didn’t believe will hold up. However, it hasn’t only been surviving for the past 11 years but is being extensively adopted throughout the world, admitted Dalio.
As had been informed by Dalio himself a while ago, he too owns some of the cryptocurrencies. However, whether he owns any Bitcoins or at least Ethereum, is not sure as he hadn’t been informed about the names of his owned cryptocurrencies.
Dalio may be a non-believer but there are plenty of people who believe that US$ 1 Million for Bitcoin is even an undervaluation. For instance, Michael Saylor, the CEO of Microstrategy believes Bitcoin is worth more than a million-dollar asset. He has stated several times in the past that by 2023, Bitcoin value will be US$ 600,000. For the next five, the value would exceed US$ 6 Million, believes Saylor.