The founder of Bridgewater Associates has shared his view about the future projects of the premier crypto, Bitcoin. According to Ray Dalio, Bitcoin may not hit the million-dollar mark.
Dalio currently serves as Bridgewater Associates’ chairman and co-chief investment officer. When asked if Bitcoin will reach a very high number, he said:
“I don’t think that’s possible.”
He added:
“The way I look at it is there’s a certain amount of it [bitcoin] and there is a certain amount of gold, I’ll use gold as a benchmark”.
An important point to keep in mind, the market cap of bitcoin is currently about $1 trillion. On the other hand, the market cap of the entire crypto market is about $2.2 trillion.
Moving on, he tried to explain his point of view:
“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. 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.”
His emphasis was basically on the view that Bitcoin will not become more worthy than gold. Also, he revealed that he owns a small amount of crypto in his portfolio for diversification. He is equally impressed with the technology and programming behind it:
“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.”
Related Stories: