Fiat currency as an efficient store of value is “in grave danger”, but bitcoin and stablecoins will not be able to cope with this role. This was stated by investor and billionaire Ray Dalio.
“#Bitcoin has no relation to anything. It’s a tiny thing that gets disproportionate attention,” says @RayDalio on #crypto. “The value of $BTC is less than 1/3 of $MSFT stock. It’s not an effective store of wealth. But we are in a world where money as we know it is in jeopardy.” pic.twitter.com/Cc7o2TwkxG
— Squawk Box (@SquawkCNBC) February 2, 2023
According to the founder of Bridgewater Associates, the massive issuance of reserve currencies makes him doubt that they are a form of “effective money.”
“We live in a world where money as we know it is under threat. We print too much, and it’s not just the US,” he said.
According to Dalio, bitcoin has achieved a lot in 12 years, but it is still too volatile to try on the status of money.
“Bitcoin is not an efficient store of wealth, nor an efficient medium of exchange. The first cryptocurrency is a tiny thing that attracts a disproportionate amount of attention. For me, the value of bitcoin is less than 1/3 of the value of Microsoft shares,” he explained.
The billionaire came to similar conclusions regarding stablecoins, which are a “copy” of fiat.
As a panacea, the expert sees an inflation-linked coin that can preserve the purchasing power of the population.
“The closest thing to that is inflationary bonds. If you were to create a coin with the inscription „OK, that’s purchasing power”in which I can save and invest my money for a certain period of time and make transactions anywhere, I think it would be a good coin,” he said.
The founder of Bridgewater Associates predicted the emergence of coins that would be attractive and viable, unlike Bitcoin.
Recall that in May 2022, Dalio called bitcoin a good insurance against inflation, but not a full-fledged alternative to gold.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
