Billionaire hedge fund manager Ray Dalio tried to clarify his views on the world’s most famous digital asset by publishing a short article titled What I Really Think About Bitcoin.

Dalio’s views on Bitcoin (BTC), which he says should be read directly to avoid misunderstanding in the media, are reassuring and cautious at the same time. First, Dalio recognized Bitcoin’s technological advancement and praised its ability to operate for more than a decade:

“I think Bitcoin is an invention. The invention of a new type of money using a system that has been programmed into a computer that has been in operation for about 10 years and is rapidly expanding in popularity, given the type of money and wealth stocks is an amazing feat.”
Moreover, Dalio believes that Bitcoin is indeed an “alternative gold asset” that will become more and more important in the future due to the weakness of fiat currencies through large amounts of money and printed debt:

“Those who built it and supported the dream of turning this new kind of money into a reality, have done an amazing job keeping this dream alive and making Bitcoin (I mean it and its analog competitors) an alternative gold mine. There aren’t many alternative assets like gold (due to the accumulation of debt and cash) Existing in the process that will happen in the future), there aren’t many alternative assets to it.
Dalio believes Bitcoin has already crossed the line, and has gone from a “speculative idea” to something that “may” have some value in the future:

“It seems to me that Bitcoin has crossed the line, going from a very speculative idea that may not have emerged anytime soon, to one that may exist and may have some value in the future.”
However, not everything is so rosy about Dalio’s thoughts on the world’s first cryptocurrency. The hedge fund manager believes Bitcoin’s privacy will depend entirely on the government’s:

“As a continuation of the fact that Bitcoin is digital, the question arises as to how private it is and what the authorities allow and what not. When it comes to privacy, it appears that Bitcoin will not be as private as some suggest. After all, this is a public book …”
Why are governments discouraging Bitcoin use? As Dalio points out, the same principles apply now as in 1694, when the newly created Bank of England sought to cement its position as the only source of debt and money within its borders.

Leaders in any industry will naturally try to crush dissent, and the same could happen with Bitcoin, especially as Dalio points out if it eventually becomes more popular.

“Instead of looking forward that the government will invade privacy and / or block the use of Bitcoin (and its competitors), it seems to me that the more successful they are, the more likely these opportunities will be.”
Dalio doesn’t think government agencies will allow Bitcoin to flourish as an alternative to printing money – a sober idea that spills ice water on his early praise of the technology. Dalio SA:

“I find it difficult to imagine that they are allowing Bitcoin (or gold) to be a clearly better option than the money and loans they produce. I suspect the biggest risk to Bitcoin is success, because if it succeeds, the government will try to kill it, and they have many opportunities for success.”
The alleged demand, which is believed to have arisen from the decline in the Bitcoin supply, has also been challenged by Dalio, who has indicated that the emergence of “Bitcoin-like” assets (other alternative currencies) has effectively increased Bitcoin’s supply by offering an alternative but a similar service. …

Aside from the ideas and theories, Dalio also asked his employees at Bridgewater Associates to calculate Bitcoin’s performance as a diversified asset compared to gold during the downturn of the market.

The researchers concluded that it is too early to judge whether Bitcoin will provide the same degree of diversification in the future.

“We are hesitant to draw firm conclusions based on the small sample size and how quickly the cryptocurrency world is developing. So far, Bitcoin’s ability to offer some of the benefits of diversification seems more theoretical than you can imagine.”

Source: CoinTelegraph