A lot of self-professed financial experts do not like Bitcoin. That is not surprising, as promoting cryptocurrency would go against their own interests. Ray Dalio is the latest person to call cryptocurrency a “bubble”. Considering how he is the founder of the world’s largest hedge fund, his words carry some weight. Thena gain, JP Morgan CEO Jamie Dixon uttered a similar comment. That remark was laughed away by cryptocurrency experts.
There is no reason for hedge fund managers to say positive things about Bitcoin. However, they shouldn’t call cryptocurrency a bubble either by any means. The comments made by Ray Dalio will not be received well by the cryptocurrency community by any means. Even though his hedge fund is the world’s largest right now, they shouldn’t dismiss Bitcoin either. After all, the world’s largest central banks isn’t doing that either. An interesting situation is created, that much is evident.
Ray Dalio Doesn’t Understand Bitcoin
It is not the first time we hear a financial expert denounce Bitcoin. More specifically, JP Morgan CEO Jamie Dixon did the same last week. It is remarkable how these comments come out in droves when things go well for Bitcoin. According to Dalio, Bitcoin is not an effective store of wealth due to its volatility. He states how gold is a better option, despite its value going down quite a bit over the past few years. A store of value needs to maintain its original value first and foremost. Gold is not the best option in this regard by any means.
Interestingly enough, Dalio acknowledges Bitcoin can become a currency. It will take some time until this happens, though. More specifically, there is no broad adoption and a lot of market speculation. Both of those aspects, together with the lack of global regulation, stand in the way of Bitcoin becoming an actual currency. Then again, banks and governments will oppose cryptocurrency even if those conditions are met. Hedge fund managers such as Ray Dalio fall into that category as well.
What is pretty shocking is how he claims Bitcoin provides transaction privacy. It has been documented multiple times that is not the case whatsoever. Bitcoin is pseudonymous but not privacy-centric or anonymous by any means. All transactions can be tracked in real-time on the blockchain by just using a regular browser. Comments like these show how short-sighted people like Ray Dalio are when it comes to Bitcoin. They just reiterate misinformation spread by the media.
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