Billionaire hedge fund manager Ray Dalio has admitted that he may be wrong about bitcoin after stating that governments will ban the cryptocurrency if it “becomes material.” Dalio founded Bridgewater Associates; his hedge fund is the largest in the world.
Ray Dalio Open to Learning About Bitcoin
Bridgewater Associates founder Ray Dalio has admitted that he may be wrong about bitcoin after stating last week that he did not think that cryptocurrencies “will succeed in the way people hope they would.” He further said that governments will outlaw bitcoin if it becomes material.
Dalio is an American billionaire hedge fund manager who founded Bridgewater Associates and has served as its co-chief investment officer since 1985. His hedge fund is the largest in the world, with about $140 billion in assets under management. Dalio has been called the “Steve Jobs of Investing” by AICIO Magazine and Wired Magazine. He was also named one of the 100 Most Influential People by TIME Magazine.
As the price of bitcoin soared, surging about 55% over the past 30 days, Dalio tweeted on Tuesday:
I might be missing something about bitcoin so I’d love to be corrected.
“My problems with bitcoin being an effective currency are simple,” he began to highlight his concerns in a series of tweets.
Firstly, he claimed: “Bitcoin is not very good as a medium of exchange because you can[not] buy much with it (I presume that’s because it’s too volatile for most merchants to use, but correct me if I’m wrong).”
Secondly, he asserted: “it’s not very good as a store-hold of wealth because it’s volatility is great and has little correlation with the prices of what I need to buy so owning it doesn’t protect my buying power.”
Next, he reiterated the risk of governments banning bitcoin that he outlined in an interview with Yahoo Finance last week. Dalio said that if bitcoin “becomes material, governments won’t allow it.” He…