Ray Dalio: Bitcoin Is One Hell Of An Invention
It comes as no surprise to anyone paying attention to what Ray Dalio says, but the Bridgewater Associates founder is definitely opening his mind to the capabilities of Bitcoin (BTC).
The famed hedge fund manager wrote about Bitcoin in his Bridgewater Daily Observations. Titled What I Think Of Bitcoin, Dalio calls Bitcoin ‘one hell of an invention’ and how it’s grown from nothing to become a store of wealth ‘is an amazing accomplishment.’
‘I believe Bitcoin is one hell of an invention. To have invented a new type of money via a system that is programmed into a computer and that has worked for around 10 years and is rapidly gaining popularity as both a type of money and a storehold of wealth is an amazing accomplishment,’ explained the Bridgewater Associates founder.
Dalio explained in the preamble that he wanted to clarify what he thinks of Bitcoin, as the media tended to misconstrue his words, and he also asserted that he was no Bitcoin expert.
However, Dalio did say his team at Bridgewater were looking at other store of value options and sees Bitcoin ‘as being a gold-like alternative asset and storehold of wealth,’ something Bridgewater Associates is focusing on.
‘I and my colleagues at Bridgewater are intently focusing on alternative storehold of wealth assets, and Bitcoin won’t escape our scrutiny,’ explained Dalio.
Is Ray Dalio Slowly Becoming A Bitcoiner?
The Bridgewater Associates founder reiterated in the Daily Observations that he was still a non-expert on Bitcoin.
However, the famed hedge fund manager explained that he was eager to be corrected and learn more, and explained some of his fears about Bitcoin.
Bitcoin Could Get Hacked, No?
Ray Dalio’s main fear appears to be the possibility of Bitcoin being hacked. Of course it’s a digital network, and they are all susceptible to being hacked.
Dalio used the Department of Defense’s inability to protect its database, saying it would be ‘naïve to be totally comfortable that digital assets can’t be hacked.’
And while nothing is unhackable, Bitcoin is the most powerful and secure network ever created. In fact, Bitcoin is 4000 times more powerful than the most powerful supercomputer – IBM’s Summit.
So to compare it with the Department of Defense’s centralised database shows Bitcoin’s network security is one region Ray Dalio and his team of advisors should look into.
What About A Better Alternative To Bitcoin?
Ray Dalio also believes “another Bitcoin” will come along and displace it, because ‘that is the way the evolution of everything works.’
‘Since the way Bitcoin works is fixed, it won’t be able to evolve and I presume that a better alternative will be invented and pass it by,’ explained Dalio.
To be fair to Bridgewater Associates founder, he does call himself a non-expert, but to believe a better alternative to a completely decentralised currency and store of value can be invented again shows a lack understanding.
Does he means an Ethereum-like crypto asset? Let’s just say Ethereum is a success and becomes a platform for dApps, and becomes much more valuable in the future. Ethereum is still not a sound money, fully decentralised, and isn’t out to displace Bitcoin as a currency.
Any other “Bitcoin-like decentralised currencies” that have come along are all centralised with the backing and marketing of their founders. They all lack security, and the market is showing its lack of confidence in them.
Litecoin founder even tried his best to distance himself from Litecoin currency by selling all his LTC (at the top). Lee, however, is still their figurehead, CEO, managing director of the Litecoin Foundation or whatever.
And Litecoin, like all other “Bitcoin alternatives,” have a central point of failure.
Ray Dalio’s Words On Bitcoin Are Bullish, But He Has A Lot To Learn
Ray Dalio is slowly coming round to Bitcoin’s capabilities. He believes it’s ‘one hell of an invention’ and looks like he is ready to invest a small percentage in it.
His Bridgewater team have been scrutinising Bitcoin for a while, and the more they look into it, the clearer investing in it will become a no-brainer.
As a Bitcoiner, who has studied it for the last four years, I suggest Ray Dalio researches more about the security of Bitcoin and its decentralised network. And then maybe look into creating another Bitcoin, and discovering how impossible that will be.
His words are bullish, but it’s clear the Bridgewater Associates founder has some questionable advisors that he will be remunerating handsomely. Maybe he should look into decentralising his team, as well.
Author: Tommy Limpitlaw
Where is the best place to buy Bitcoin?
There are many great places to buy Bitcoin, and it all depends on your preference. You can buy Bitcoin on typical cryptocurrency exchanges, such as Binance, Kraken and CEX. Or you can buy it from peer-to-peer Bitcoin marketplaces, such as Paxful and LocalBitcoins. You can also buy Bitcoin from Bitcoin ATMs. It all depends on your location and preference. Check out our reviews of the best exchanges…
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.
How can I get free Bitcoins?
Nothing is really free, because even when you earn free Bitcoins you’re giving up your time, which is precious. But you can earn free Bitcoins. If you are a gamer, there are games like Bitcoin Bounty Hunt which allows you to shoot your way to Bitcoin riches. Or you can save your Bitcoin in an interest bearing account and earn some BTC interest. Be careful with these, and only go with legitimate companies, though.
What is Bitcoin resistance?
In technical analysis, large round numbers are defined as “psychological resistance levels,” like $10,000 for bitcoin. Historical resistance levels are price points that have in the past acted as support or resistance.
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.