Ray Dalio, the founder of Bridgewater Associates and a famous investor, stated that he owns Bitcoin, just as Max Keizer predicted six months ago.
He is a well-known billionaire hedge fund manager who has confessed to having Bitcoin today, which shows his belief that cryptocurrency can be the best store of wealth in an inflationary world.
Dalio has adjusted to the concept of Bitcoin as a store of wealth due to recent inflation concerns and monetary policy positions, and is starting to value it more highly than certain traditional vehicles such as government bonds.
Bitcoin’s risk in its success
Bitcoin’s biggest risk is success, claims Dalio. Bitcoin is increasingly seen as a legitimate threat to authority as it grows in popularity as a valid alternative store of value outside of the government’s hands and eyes.
The fact that people can quickly and easily convert money to crypto using centralized exchanges is essential to the cryptocurrency ecosystem. Governments could easily prevent these exchanges from operating cryptocurrencies that have significant value and function.
The economy is recovering from the pandemic after a long period of subdued demand and poses the challenge of severe supply shortages. Continuous price increases are taking the world by storm, and the United States is experiencing the highest rate of inflation since 2008. Investors with large cash reserves or government bonds should be cautious as their nominal purchasing power will decline rapidly during a period of high inflation.
In an inflationary environment like the one we are in right now, Ray Dalio, like the majority of the cryptocurrency community, believes that Bitcoin will outperform bonds. If demand remains stable, a decline in supply will inevitably lead to a rise in prices. Dalio believes international funds, particularly in Norway and Qatar, will soon announce “large positions” in Bitcoin, according to Max Kaiser, host of the Keizer report.
Otherwise, a breach of their fiduciary responsibilities would be violated, and the “new bitcoin paradigm and new reality” would quickly spread to the global fund management industry. In two years time, he reckons that BTC will hit a price above $ 500,000.
The greater the success of Bitcoin as an investment vehicle, the more it becomes a target for the world’s governments who want to keep control of money.