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

Billionaire Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, says that the price of bitcoin cannot reach very high numbers, such as $ 1 million. He explained: “It makes sense … there is a limit on its price compared to other similar things.”

Bridgewater Associates founder Ray Dalio shared his opinion on how high he thinks the price of bitcoin can go in an interview. Lex Friedman, published on Saturday. Dalio is currently the Chairman and Co-CEO of Bridgewater Associates Investment. His firm’s clients include trust funds, governments, foundations, pension and government wealth funds.

The Bridgewater boss was asked if he thought the price of bitcoin could reach a very high figure, like $ 1 million. Dalio immediately replied:

I do not think that’s possible.

“I look at it this way: it has a certain amount of [bitcoin] and there is a certain amount of gold, ”he explained. “I will use gold as a benchmark,” he added, noting that the market cap for bitcoin is currently around $ 1 trillion and the market cap for the entire crypto market is around $ 2.2 trillion.

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

The billionaire stressed that he does not think Bitcoin will be worth more than gold. “I think 20% sounds roughly correct,” he confirmed, but admitted, “I really don’t know what the correct answer is.”

The Bridgewater founder concluded, “If you’re using gold as a measure, it doesn’t make sense to use it much more often.” Admitting that he was “not sure of anything,” Dalio said:

Logically, it seems to me that there is a limit on its price compared to other similar things.

Dalio previously reported that he has a small amount of cryptocurrency in his portfolio to diversify. Regarding Bitcoin, he said, “I think it’s very impressive that in the last 10, 11 years, programming is still holding up. It hasn’t been hacked and so on, and it has a speed of acceptance. “

Some people disagree with Dalio as to how high the price of bitcoin is. Microstrategy CEO Michael Saylor, for example, expects the price BTC continue to rise against the dollar. A spokesman for bitcoin proponents highlighted that it could reach $ 600,000 in the future, followed by $ 6 million per coin.

What do you think of Ray Dalio’s prediction and commentary? Let us know in the comments below.