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Ray Dalio reconsiders his skepticism about bitcoin

The billionaire and philanthropist investor Ray Dalio, admitted on Tuesday through his Twitter account, that he may be missing key information about bitcoin and requested that it be corrected.

The investor has maintained a skeptical position on bitcoin, especially with criticism of cryptocurrency as a medium of exchange. However, given the notorious appreciation of bitcoin in recent weeks, Dalio wants to validate his views with those who hold a position favorable to the first cryptocurrency.

It seems that Dalio presumes that there may be inconsistencies between the position he has taken on bitcoin and the recent performance that this cryptocurrency has shown, which this Wednesday surpassed the USD 18,000 mark, a value that had not reached since January 2018, and which surpassed the USD 18,000 mark this Wednesday.

Ray Dalio admits to missing something about bitcoin. Source: @ RayDalio / Twitter

Dalio’s position on bitcoin

In a thread of 5 tweets, Dalio exposes his views on bitcoin. He cites volatility as an impediment for business to accept it.

Regarding bitcoin as a store of value, use volatility again as an obstacle to assuming that role. In an interview with Yahoo Finance last week, Dalio said that if bitcoin were to become established, the government would use force to ban it. In this interview, he reiterates his doubts about the ability of bitcoin to be a store of value or a medium of exchange.

“I cannot imagine central banks, large institutional investors, international companies or companies using bitcoin,” Dalio added. “If I am wrong about this, I would like to be corrected.”

The ecosystem responds

Many of the answers come from renowned bitcoin advocates. For example, Michael Saylor, CEO of MicroStrategy invites Dalio to watch a video entitled Bitcoin is hope, in which he presents his thesis on bitcoin as a store of value. Saylor made a $ 425 million investment in bitcoin in August and September, as MicroStrategy’s cash reserve, which served as a model for other similar investments. Currently, this reserve has a value of USD 695 million, 63% more than the original investment.

Fidelity Digital Assets, who published a Bitcoin Investment Thesis, reviewed by CriptoNoticias, responds to Dalio with an invitation to review a document dedicated to responding to persistent criticism of bitcoin. Precisely the first two criticisms that the document addresses are “Bitcoin is too volatile to be a store of value” and “Bitcoin has failed as a means of payment.”

There are also invitations to podcasts and interviews by Peter McCormac and Vijay Boyapati, among others. The latter says, referring to Dalio. “You seem to be open-minded and want to hear the best arguments before scrapping #Bitcoin. Congratulations on that.

Last April, CriptoNoticias reviewed some statements by Dalio in which he anticipated an economic collapse greater than that which occurred in 2008, due to the response of the United States Federal Reserve and other central banks to the Covid-19 pandemic.