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

Ray Dalio, founder of Bridgewater Associates, shared his views on the potential price that bitcoin might reach in an interview with Lex Fridman published Saturday. Dalio is currently the chairman of Bridgewater Associates and co-chief investor officer. His clients include governments, foundations and endowments.

Bridgewater boss Dalio was asked if he believes it is possible for bitcoin’s price to reach $1 million. Dalio quickly replied:

That’s impossible, I think.

He explained, “The way I see it is there’s some of it [bitcoin] but there’s also a certain quantity of gold,” he said. He said, “I’ll use gold for a benchmark,” noting that bitcoin’s market cap is approximately $1 trillion, while the total crypto market market cap is $2.2 trillion.

He explained that if you subtract the money in gold that isn’t used for jewelry and central bank purposes (and I assume that bitcoin won’t be used to make jewelry or central bank purposes), that would equal about $5 trillion. “So, if you have a portfolio with gold and… bitcoin, it would be worth around 20% of the gold’s value.

He stressed that bitcoin is not going to be more valuable than gold, but he believes it will. He said that he thinks 20% is about right but acknowledged that he doesn’t know the answer.

Bridgewater founder Dalio concluded that if you use gold to measure something, it makes no sense that it will be used so much more. Dalio admitted that he’s not sure about everything, but he said:

It seems to me that its price is limited in relation to similar items.

Dalio revealed previously that he keeps a small amount crypto in his portfolio to diversify. He stated that bitcoin is a very impressive technology. It hasn’t been hacked, so it doesn’t have an adoption rate.

Dalio is not the only one who has doubts about bitcoin’s potential price. For example, Microstrategy CEO Michael Saylor expects that the price of BTC will continue to climb against the dollar. The pro-bitcoin executive mentioned that the price could rise to $600,000. And then $6 million per coin in the future.

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