„If I’m wrong about these things, I’d love to be corrected,“ said Dalio.
In a Twitter thread posted on November 17, Ray Dalio stated that he believed that Bitcoin (BTC) was not an efficient exchange medium or store of value because of its volatility. He also stated that governments could ban cryptoactives if they become a threat to fiat currencies. However, he also admitted that he „may be missing something“ and invited others to intervene with their explanations.
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„I can’t imagine central banks, big institutional investors, companies or multinationals using [Bitcoin],“ said Dalio. „If I’m wrong about these things, I’d love to be corrected.
I might be missing something about Bitcoin so I’d love to be corrected. My problems with Bitcoin Era being an effective currency are simple. (1/5)
– Ray Dalio (@RayDalio) November 17, 2020
Dalio’s comments came after an increase in the price of BTC, as the cryptoactive surpassed the USD 17,500 mark in less than 24 hours. The bullish news led many contributors in space to share their views with the billionaire.
„Let’s put it this way Bitcoin is money, everything else is credit,“ said Mati Greenspan.
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Meltem Demirors, Director of Strategy at CoinShares, offered a more in-depth answer on how she believed Bitcoin could be used effectively for payments, but added that it was „a savings technology at its core. BlockFi CEO Zac Prince followed up with his own thread, addressing each of Dali’s points separately. He cited the institutional investors who have recently decided to adopt Bitcoin, including Fidelity Digital Assets, Square, Paul Tudor Jones, Bill Miller and Stanley Druckenmiller, to name a few.
2/ @RayDalio, you are starting from a bad initial position of Bitcoin needing to be a currency to be valuable. Better to think of it as an asset subject to the laws of supply and demand like gold, art etc. There’s a great analogy about this – „Bitcoin has a platypus problem“ pic.twitter.com/lRQY0XU2kS
– Zac Prince (@BlockFiZac) November 17, 2020
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Last Thursday, Dalio said he believed governments would likely increase their efforts to ban cryptomonies if they saw material growth. His comments came when the price of BTC was approximately USD 2,000 less than the current price, USD 15,700 compared to USD 17,732.