Bitcoin will eventually disappoint the holder, warns billionaire Dalio

While some companies such as Fintech Square or business analytics MicroStrategy hedge against the threat of inflation by converting cash into bitcoin, Dalio rejects the perception of bitcoin as a digital equivalent of gold. “I don’t think digital currencies will succeed to the extent that holders hope,” Dalio said.

The possible notion that bitcoin will spread massively as a global currency and a kind of reserve currency will be taken for three reasons: bitcoin is not paid much, its value fluctuates too much and, last but not least, no government is behind it.

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Although cryptocurrents describe the last aspect as a defining element of bitcoin and at the same time an advantage in the form of decentralization and resistance to censorship, Dalio argues differently. “If bitcoin became a really big thing, states would use all their means to outlaw it. Transactions with him or her would simply prohibit them. In the past, they have done it once with gold, “added Dalio.

From a technological point of view, it is not possible to ban the functioning of bitcoin, as its operation is not ensured by any central authority, but for many, especially institutional investors, the cryptocurrency would suddenly cease to exist.

Kicom: Maybe new virtual coins have landed in your cryptocurrency, and you don't even know it

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Dalio, on the other hand, believes that “digitized currencies”, ie standard currencies such as the dollar, yuan or euro, converted into a purely virtual form, are a great boom, which some central banks are already working on.

In China, for example, the government is strongly supporting the digital yuan project, although trading in bitcoin-type virtual currencies has been banned for a long time.

Bitcoin has been rising for half a year since halving, but the forecasts of some experts saw the price of cryptocurrency much higher

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Recently, however, there are more and more well-known investors supporting bitcoin, especially in the United States. This week boasted its inclusion in its portfolio includes investor and hedge fund manager Stanley Druckenmiller, to whose name CNBC adds the adjective “legendary”.

Already in May, another well-known character on Wall Street, Paul Tudor Jones, came up with the same announcement. However, both approach the cryptocurrency, ie risky investments, conservatively: they invested only a fraction of their assets in bitcoin.

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