Bitcoiners responded to Dalio with arguments in favor of Bitcoin. One of the investor’s criticisms about Bitcoin is that this would not be a good means of payment.

In recent days, billionaire and philanthropist investor Ray Dalio admitted on his Twitter account that he may be missing key information about Bitcoin.  In that sense, he requested bitcoiners to correct him if he was wrong.

Everyone knows that the investor has maintained a skeptical position on Bitcoin, especially on its use as a medium of exchange. However, the notable appreciation of Bitcoin in recent weeks has led Dalio to want those in favor of the pioneering cryptocurrency to validate his views.

Dalio seems to believe that there could be inconsistencies between his position on Bitcoin and its recent performance. The main cryptocurrency in the market exceeded the USD 18,000 mark, a value not seen since January 2018.

Dalio’s Position on Bitcoin

On his Twitter account, Dalio exposes his views on Bitcoin. He mentions that its volatility is an obstacle for businesses to accept it as a means of payment.

Regarding Bitcoin as a store of value, he uses its volatility again as an impediment to assuming that role. Dalio recently said that some governments would use force to ban Bitcoin if it became established. He reiterated his doubts about Bitcoin’s ability to be a store of value or a medium of exchange.

He added that he cannot imagine central banks, large institutional investors, international companies, or companies using Bitcoin. “If I am wrong about this, I would like someone to correct me.”

Responses from the Ecosystem

Many responses came from renowned Bitcoin advocates, such as Michael Saylor, CEO of MicroStrategy. This executive invited Dalio to watch a video in which he presents his thesis on Bitcoin as a store of value. In August and September, Saylor made a USD 425 million investment in Bitcoin, as MicroStrategy’s cash reserve, serving as a model for similar investments. That reserve currently has a value of USD 695 million, that is, 63% more than the original investment.

Dalio received an invitation from Fidelity Digital Assets, who had published a Bitcoin Investment Thesis, to review a document that responds to persistent criticism about Bitcoin. Coincidentally, the document addresses these two criticisms: “Bitcoin is too volatile to be a store of value” and “Bitcoin has failed as a means of payment.”

Peter McCormac and Vijay Boyapati, among others, have also invited him to participate in podcasts and interviews. Boyapati said that Dalio “seems to be open-minded and want to hear the best arguments before discarding Bitcoin.” He congratulated him on doing it.

Last April, Dalio predicted an economic crash larger than the one that occurred in 2008. He did this due to the response of the US Federal Reserve and other central banks to the COVID-19 pandemic.

Regardless of what Ray Dalio initially said about the pioneering cryptocurrency, he seems to understand that he has underestimated its potential. The ability of Bitcoin to overcome the worst crises proves once more that it is the best option to invest, even above gold.

By Willmen Blanco

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