Ray Dalio, founder of Bridgewater Associates, pointed out the Bitcoin code as a potential weakness, raising doubts about its long -term viability. His remarks sparked a rapid reaction within the Crypto community, several analysts defending the resilience, transparency and the proven Bitcoin assessment as a reserve of value.
In short
- Ray Dalio stresses that Bitcoin's code and transparency are obstacles to its adoption as a global reserve currency.
- Analyst Crypto Adam Livingston defends Bitcoin, saying that his transparency is on the contrary a force that reduces systemic financial risks.
- Bitcoin, currently at $ 122,000 for a capitalization of 2.4 billions of dollars, has treated more than 10 billions of dollars in on-chain transactions since its launch.
- Despite his concerns, Dalio recognizes that Bitcoin is a “hard currency” and has a small part as a blanket against volatility.
Dalio warns against the fact that the Bitcoin code limits its reserve potential
During an intervention on The Master Investor Podcast, Ray Dalio wondered about Bitcoin's ability to become a complete substitute for money, despite its growing role as a reserve of value.
He stressed that Bitcoin has many Characteristics associated with currencyin particular its limited offer and its ability to facilitate transactions worldwide.
It is limited in its offer. It has certain transactional advantages very easily worldwide. You can make transactions with him. Thus, he has these elements.
Ray Dalio
However, Dalio questioned the possibility that the Crypto OG is one day adopted as reserve currency. He noted his lack of confidentiality, adding that governments can easily follow transactions on the network. According to him, this transparency makes it unlikely that central banks consider Bitcoin as a reserve asset in the same way as gold or currencies.
The experienced investor has also recalled that, although Bitcoin can operate in part as a means of exchange, it now serves more as a wealth reserve. He added that certain questions persist as to the solidity of his code and the possibility of a possible government interference.
Crypto analysts react to Dalio's remarks
Dalio's words quickly caused an answer from the crypto community. Adam Livingston, recognized analyst in the sector, criticized this assessment, calling it as Fud (Fear, Uncertainty and Doubt). According to him, the transparency of the Bitcoin network, presented by Dalio as a weakness, is in reality one of its greatest forces.
He explained that this transparency contributes to avoiding the opacity which favored the financial crisis of 2008. According to Livingston, BTCcurrently listed at 122,000 dollars, has already established itself as a credible wealth reserve.
In just 16 years, Bitcoin has become an asset of 2.4 billions of dollars, surpassing gold and several large fiduciary currencies in terms of long -term purchasing power. The analyst also recalled the extent of the network, stressing that he has already treated more than 10 billions of dollars in transactions on the blockchain.
Livingston has also ruled out the safety concerns of the source code of Bitcoin. He said that the SHA-256 algorithm, which protects transactions, resisted decades of tests and remains inviolate. He considers the fears of a compromise of the code as purely speculative and devoid of technical foundation.
Dalio still recognizes the forces of Bitcoin
Despite his criticism, Ray Dalio recognized the role of Bitcoin as a form of “hard currency”. With an offer capped at 21 million units, Bitcoin shares several characteristics with rare assets such as gold or silver. In previous declarations, he even suggested that a share of up to 15 % of a portfolio could be allocated to Bitcoin as a coverage against market volatility.
Dalio has confirmed that he personally has Bitcoin, although his exhibition remains limited. He made his first purchase in 2021, after years of skepticism, and has preserved since a prudent allowance.
His balanced vision recalls that of other renowned investors, such as Robert Kiyosaki, author of Rich Dad Poor Dadwhich regularly recommends the diversification between Bitcoin, Gold and Silver. Both see in Bitcoin potential protection in the face of financial instability, even if they diverge on its ability to become a global currency.
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