• Billionaire investor and hedge fund manager Ray Dalio has shared his opinion on Bitcoin, stating that it is not an effective money, store of value, or medium of exchange.
• However, he believes that money as we know it is in jeopardy and digital currencies could play a role in the future.
• Dalio suggests that the best option would be an inflation-linked coin to help secure individuals’ buying power.
Billionaire Ray Dalio’s Opinion On Bitcoin
Billionaire investor and hedge fund manager Ray Dalio recently shared his thoughts on bitcoin during an interview with CNBC Thursday. He stated that bitcoin is „amazing“ for what it has accomplished but does not believe it is going to be an effective money, store of value, or medium of exchange. Despite this, he acknowledged that “we are in a world in which money as we know it is in jeopardy,“ suggesting digital currencies may have a role to play in the future.
Bitcoin’s Market Value Compared To Microsoft
Dalio noted that bitcoin’s total market value is less than a third of Microsoft’s stock at $1.92 trillion on Friday. Further emphasizing this point by mentioning biotech and other industries which are more interesting than bitcoin, he made clear his opinion on its effectiveness as a form of currency.
What Is Money?
When discussing the potential for digital currencies such as China’s renminbi, Dalio posed the question: „what is money and how’s that going to operate?“ He believes stablecoins are not ideal because they are linked to fiat currency but suggests an inflation-linked coin could be beneficial to secure individuals‘ buying power.
The Need For Something Different
Dalio stresses that if people want a digital currency then something different must be done from what bitcoin offers; “you have to do something different,“ he said. The billionaire believes creating such a coin would give individuals buying power with which they can save for the future without worrying about losing their purchasing power due to inflationary pressures within traditional monetary systems like fiat currency and gold reserves.
In conclusion, although billionaire investor Ray Dalio does not believe bitcoins will become an effective form of money or store of value, he acknowledges there may be more suitable options when looking into digital currencies due to current issues surrounding fiat currency and gold reserves which threaten people’s ability to save for the future with real purchasing power intact.