The Billionaire and founder of the largest hedge fund in the world, Bridgewater Associates, Ray Dalio, believes that the price of bitcoin will never reach a level as high as $1 million. “Logically… there’s a limit on its value in respect to other similar things,” he stated.
Where Does Bitcoin Go From Here?
On Saturday, during an interview with Lex Fridman, Bridgewater Associates founder Ray Dalio discussed how high he believes the price of bitcoin could go. Dalio is the co-chief investment officer and chairman of Bridgewater Associates. Endowments, pension funds, governments, foundations, and sovereign wealth funds are among his firm’s clients.
The CEO of Bridgewater Associates was questioned if he believes the price of bitcoin may reach a very high level, such as $1 million. Dalio promptly replied:
“I don’t think that’s possible.”
He went on to add that the way he looks at the matter is “there’s a certain amount of it [bitcoin], and there is a certain amount of gold and I’ll use gold as a benchmark,” he said, pointing that the market cap of BTC is around $1 trillion.
He explained, “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.”
The Bridgewater founder concluded, “If you use gold as a measure, it just makes no sense that it’s going to be used that much more.” While admitting that he is “not sure about anything.”
The comparison between Gold and Bitcoin is nothing fresh. Earlier this month, MicroStrategy’s CEO said that one should buy and prefer Bitcoin over Gold. The pro-bitcoin CEO stated that it might eventually reach $600,000 and ultimately $6 million per coin.