Ray Dalio, a well-known billionaire and hedge fund manager, said in a hopeful statement about Bitcoin that he did not expect governments to allow a serious competitor in the money supply.
To Report Coin Telegraph, Ray Dalio, billionaire and hedge fund manager, recently published a short article entitled “What I Really Think About Bitcoin,” which includes his views on the most popular digital asset.
Dalio’s comments about Bitcoin, which he himself said should be read directly and completely so as not to be misunderstood by the media, are both promising and alarming. In his first post, he mentioned the technical achievements of Bitcoin and praised its ability to last for a decade.
I believe that Bitcoin is a very big innovation. It is an amazing achievement to invent a new type of money through a computer-programmed system that has lasted about 10 years and is rapidly gaining popularity both as money and as a storehouse of wealth.
Dalio believes that bitcoin is already an “alternative and valuable gold” asset due to the devaluation of Fiat money due to overprinting and debt. [توسط دولتها], Bitcoin will become more and more important in the future.
Those who built it and stood behind the dream of making such money a reality have done a wonderful job of pursuing that dream and moving bitcoin (and similar competitors) to become a valuable gold asset. Now that there is a growing need for alternative valuable gold assets (due to the current volume of debt and money production that is ongoing and will occur in the future), there are not many such assets.
According to Dalio, bitcoin has already crossed the line of “speculative ideas” and has become something that “probably” will be valuable in the future.
In my opinion, Bitcoin has succeeded in crossing the line of a highly speculative idea that might disappear in the short term, and has become something that is likely to remain and will be valuable in the future.
However, not everything about the world’s first digital currency from Dalio Bob Mill’s point of view. The director of the hedge fund believes that the privacy of bitcoin is as high as governments allow. He said about this:
When it comes to the digital nature of bitcoin, the question arises as to how much privacy it has and what the government allows to be what it is and what it is not. Regarding privacy, it seems that bitcoin is unlikely to remain as private as some people think. After all, this currency is a general ledger.
Why should governments intend to disrupt the use of bitcoin? According to Dalio, the influential principles in the market are exactly the same ones that were effective in 1694. At the time, the newly established Bank of England sought to consolidate its position as the sole exporter of debt and money within the country.
The leaders of every industry naturally try to suppress the opposition, and Dalio says the same thing will happen to Bitcoin if it continues to become more popular.
Although it is unlikely that the government will want to attack the privacy or use of bitcoin (and its competitors), it is more likely that the more successful bitcoin is, the stronger the chances are.
Dalio finds it unlikely that government agencies will allow bitcoin to grow as an alternative to cash, and this is a cold water on his previous praise of the technology. He says:
It’s hard for me to imagine them allowing bitcoin (or gold) to be a better choice than the money or credit they generate. My guess is that the biggest risk for Bitcoin is its success, because if it succeeds, the government will try to destroy it and it has a lot of power to do so.
Dalio questioned the claim that the increase in demand is due to the decrease in bitcoin supply. He said the emergence of bitcoin-like assets (altcoins) would effectively expand the bitcoin supply by offering an alternative with similar services.
The founder of Bridgewater Associates, an investment management company, abandoned ideas and theories and asked his colleagues at the company to calculate the performance of bitcoin as a diversified asset during a downturn compared to gold.
He concluded that it is too early to say whether Bitcoin will provide the same amount of diversification in the future. Dalio added:
With this small statistical sample and given the rapid growth and evolution of the world of digital currencies, we can not draw any conclusive conclusions. Until now, Bitcoin’s ability to diversify has been more theoretical than fact-based.