The co-founder of the world’s largest hedge fund manager, Bridgewater Associates, might not be convinced that Bitcoin can be a currency. Still, he is also admitting that he might be missing something about the leading cryptocurrency.
“I might be missing something about Bitcoin, so I’d love to be corrected,” said Ray Dalio in a tweet on Tuesday.
This tweet came in response to someone's comment on Dalio not practicing what he preaches. Dalio’s original tweet talked about practicing to “appreciate the art of thoughtful disagreement,” being critical to society and very relevant in getting the very right answers together.
“His opinion on BTC at the moment clearly reflects a lack of deep insight in the matter,” said one Twitter user.
When two people believe opposite things, chances are one of them is wrong. It pays to find out if that someone is you. In thoughtful disagreement, your goal is not to convince the other party that you're right—it's to find out which view is true and decide what to do about it.2/2
— Ray Dalio (@RayDalio) November 12, 2020
After saying that he might be missing something about Bitcoin, he reiterated his view on why he has problems with BTC being an effective currency.
The issues are simple: “Bitcoin is not very good as a medium of exchange because you can buy much with it,” he said, adding because it is too volatile for most merchants to use but added, “correct me if I’m wrong.”
The billionaire investor further pointed out that it is this volatility that makes it “not very good as a store-hold of wealth” and also because “it has little correlation with the prices of what I need to buy so owning it doesn’t protect my buying power.”
And last but not least, he thinks, if Bitcoin “becomes successful enough to compete and be threatening enough to currencies that governments control, the governments will outlaw it and make it too dangerous to us.”
Last week, when Dalio talked about the government banning the open-source, peer-to-peer system, Twitter CEO Jack Dorsey has cut it down with a simple “No.”
Dalio just “can't imagine” that central banks, businesses, multinational companies, or big institutional investors are using it. But again,
“If I’m wrong about these things I would love to be corrected.”
Given the kind of adoption Bitcoin has been seeing from the public companies and institutional investors in 2020, Dalio certainly needs to take a deep dive into Bitcoin to understand it better.
Meanwhile, BTC continues to climb higher and higher, reaching levels not seen since January 2018. Today, BTC/USD jumped to nearly $17,900.