Billionaire Ray Dalio remarked on the largest cryptocurrency by market cap Bitcoin, stressing that it is not the viable alternative despite the looming collapse of fiat currency as per a Feb. 2 interviews with CNBC Squawk.
"#Bitcoin has no relation to anything. It's a tiny thing that gets disproportionate attention," says @RayDalio on #crypto. "The value of $BTC is less than 1/3 of $MSFT stock. It's not an effective store of wealth. But we are in a world where money as we know it is in jeopardy." pic.twitter.com/Cc7o2TwkxG
— Squawk Box (@SquawkCNBC) February 2, 2023
Dalio verbally said:
“Neither Bitcoin nor stablecoin is the viable alternative to the looming collapse of fiat currency. Bitcoin has no relation to anything. It’s a tiny thing that gets disproportionate attention.”
He further argued that stablecoin is a replica of state-backed currencies and would not fit the role of an effective form of money.
Crypto Community Reacts To Dalio’s Remark
The statement by Dalio has been greeted by vehement reactions among the crypto community. One of the users, Gandalf, made a mockery of Dalio that he appeared to be struggling with his speech.
However, a Bitcoin advocate Ahmad Alkabra provided a detailed response, stating that Bitcoin is the solution to the monetary problem that Dalio is seeking for. He justified that the digital asset is censorship-resistant, open, neutral, finite, and not controlled by anyone.
In the same vein, another user Sean Doherty tweeted that Bitcoin is the smartest digital asset as it relates to hedge funds.
On the contrary, Hudson subscribed to the argument by Dalio, stressing that the scenario of MicroStrategy CEO Michael Saylor has demonstrated that Bitcoin is not sufficient or sustainable.
Agree with Dalio’s macro too, but Saylor’s levered positions & increasingly large % of outstanding BTC “float” isn’t gonna end well, might be bad for ecosystem / set it back
— Hudson Far West (@hudsonfarwest) February 2, 2023
He further stressed that Saylor’s levered positions and increasingly large percentage of outstanding Bitcoin (BTC) portends a great danger for the crypto ecosystem.
Meanwhile, Dalio has remained very controversial on the advantages and potentials of virtual assets like Bitcoin.
Historically, he was a staunch critic of Bitcoin in 2021, stressing that Bitcoin is one hell of an invention that no reasonable investor should ever consider. He thus called for a ban on Bitcoin in the United States.
Contrarily, Dalio became a supporter of Bitcoin in 2022 saying that at least 1% to 2% Bitcoin allocation should be seen in every investor’s portfolio. He further praised Bitcoin for its resilience then.