In a Twitter thread on November 17thRay Dalio explained who believed that Bitcoin (BTC) was not an efficient medium of exchange or value storage due to its volatility. He also claimed that governments could ban crypto assets if they posed a threat to fiat currencies. But still, He also admitted that “he may be missing something” and invited others to intervene with their explanations.
“I can’t imagine central banks, large institutional investors, corporations or multinational corporations working with it [Bitcoin]”, said Dalio. “If I am wrong about these things, I would like to be corrected.”
I may be missing something about Bitcoin so I would like to be corrected. My problems with Bitcoin as an effective currency are simple … (1/5)
– Ray Dalio (@RayDalio) 17th November 2020
Dalio’s comments were based on a surge in BTC prices as the Cryptoasset passed the $ 17,500 mark in less than 24 hours. The bullish news prompted many contributors in the room to share their views with the billionaire.
“Let’s put it this way … Bitcoin is money, everything else is credit”, said Mati Greenspan.
Meltem Demirors, CoinShares Strategy Director, offered however, a more elaborate answer to how he believed Bitcoin could be used effectively for payments added that it was “a saving technology at its core”. The CEO of BlockFi, Zac Prince, followed with its own thread addressing each of Dalio’s points separately. He quoted institutional investors who recently opted for Bitcoin, These include Fidelity Digital Assets, Square, Paul Tudor Jones, Bill Miller, and Stanley Druckermiller, to name a few.
2 / @ RayDalioThey assume a bad starting position for Bitcoin, which has to be a currency in order to be valuable. It is 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 to this – “Bitcoin has a platypus problem” pic.twitter.com/lRQY0XU2kS
– Zac Prince (@BlockFiZac) 17th November 2020
Last Thursday, Dalio said he believed governments would likely step up efforts to ban cryptocurrencies if they saw material growth. His comments came when the price of BTC was about $ 2,000 below the current price, down $ 15,700 down from $ 17,732.