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Threats to Bitcoin according to Ray Dalio

Bitcoin crash

Ray Dalio, the author of the book Principles, which has become an inspiration for many financial wizards, has talked about Bitcoin and things that are working against the revolution in an interview.

3 Forces that are in works

According to Ray Dalio there are three forces at work that are changing the world as we know it.

High levels of debt combined with extremely low interest rates, increasing wealth gap and rise of another super power, China, will forever change the face of the world power structure.

Ray compared these shifts to the era of the Great Depression.

3 things working against Bitcoin

china bans antiblockchain“There are three main problems with Bitcoin: Currency has to be a medium of exchange, store hold of wealth and Governments want to control it.

Ray explains how we cannot buy things with Bitcoin and its volatility makes it a bad store hold of wealth. 

In addition, governments will enforce whatever means they have to ban it.

Governments have outlawed gold so thinking Bitcoin will be immune to such drastic measures from the government is baseless.

Counter arguments to Ray Dalio’s points

The first contention of Ray was about inability to buy stuff with Bitcoin.  This I think will take care of itself as more and more services like Crypto.com cards, PayPal and other services come into the market making it easy to spend your Bitcoins.

Second contention from Ray is that of store of value.  Bitcoin has out performed every single investment vehicle out there in the market, including stocks and gold.  In the years to come, Bitcoin is expected to reach $100,000 or more, if this were to hold, it will be the only asset to do a 7x from its current price in a few years.

Third contention of Ray is about the government trying to ‘ban’ Bitcoin.  With gold, because it is a physical object – it was easy for the government to seize it.  How are you going to stop bitcoin?  The only way to truly shut-down bitcoin is to shut-down the internet.  In our opinion, that is not going to happen…

Conclusion

While Ray’s entire interview is quite enlightening – we personally think that his views on Bitcoin are a bit old fashioned and unfounded in what the technology can do.

The three points on which Ray based his views could easily be refuted on the basis of what we are seeing in the market.

You draw your own conclusions…we did ours!

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

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