Billionaire Ray Dalio Sees Limit on Bitcoin Price, Doubts BTC Can Reach $1 Million – Markets and Prices

Billionaire Ray Dalio, founder of the world's largest hedge fund Bridgewater Associates, says it is not possible for the price of Bitcoin to reach a very high value like $1 million. He explained: "Logically...there is a limit to the price relative to similar things."

Ray Dalio on the development of the Bitcoin price

Bridgewater Associates founder Ray Dalio shared in an interview how high he thinks the Bitcoin price could reach Lex Fridman, published on Saturday. Dalio is currently Chairman and Co-Chief Investment Officer of Bridgewater Associates. His firm's clients include foundations, governments, endowments, pensions and sovereign wealth funds.

The Bridgewater boss was asked if he thinks it is possible for the price of Bitcoin to reach a very high value, such as $1 million. Dalio promptly replied:

I don't think that's possible.

“The way I look at it, there is a certain amount of it [bitcoin] and there is a certain amount of gold,” he explained. “I will use gold as a benchmark,” he added, noting that Bitcoin’s market cap is currently about $1 trillion and the market cap of the entire crypto market is about $2.2 trillion.

“If you take the amount of money in gold that is not used for jewelry purposes and not used by central banks — and I assume Bitcoin is not used for jewelry purposes or central bank purposes — that amount of gold is about $5 trillion,” he explained. “So right now if you have a portfolio that includes gold and… Bitcoin, it’s worth about 20% of the value of gold.”

The billionaire emphasized that in his opinion Bitcoin is not worth more than gold. “I think 20% sounds about right,” he confirmed, but admitted, “I really don’t know what the right answer is.”

The Bridgewater founder concluded: “If you use gold as a measure, it just doesn’t make sense that it would be used so much more.” While admitting he's "not sure about anything," Dalio said:

Logically it seems to me that the price is limited relative to other similar things.

Dalio previously revealed that he has a small amount of crypto in his portfolio for diversification. As for Bitcoin, he said: "I think it's very impressive that programming has still held up over the last 10, 11 years. It hasn't been hacked and so on, and it has an adoption rate."

Some people disagree with Dalio about what the price of Bitcoin could be. Microstrategy CEO Michael Saylor, for example, expects the price of BTC continue to rise against the dollar. Specifically the Pro Bitcoin Manager called that it could reach $600,000 and then $6 million coin in the future.

What do you think of Ray Dalio's prediction and comments? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the interface between economics and cryptography.

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