Ray Dalio on the Future of Bitcoin

Ray Dalio speaks out, Elon goes #bitcoin, and MicroStrategy's bitcoin conference is here!

Who Is Ray Dalio?

Ray Dalio manages the world’s largest hedge fund.

He is the last holdout yet to embrace bitcoin on a very short list of financial whales. The list—Paul Tudor Jones, Stanley Druckenmiller, and Larry Fink.

You can add others here and there but one can argue these names are on par with Warren Buffett (and Buffett’s not changing his tune on BTC).

“I believe Bitcoin is one hell of an invention.”

To be clear, Dalio isn’t coming out in favor of bitcoin.

He has, however, clarified his position.

It’s only fitting that the manger of the world’s largest hedge fund would comment on the world’s largest cryptocurrency.

Dalio Can't Ignore Bitcoin

He calls bitcoin “one hell of an invention” and lauds it for working these past 10+ years. Dalio also acknowledges that bitcoin is a store of value.

“Because there aren’t many of these gold-like storehold of wealth assets that can be held in privacy and because the sizes of their markets are relatively small, there exists the possibility that Bitcoin and its competitors can fill that growing need.”

Read his entire take here.

Dalio opens his piece with a caveat that he is not a bitcoin or cryptocurrency expert. He brings up familiar questions around regulation, whether or not bitcoin can be ‘hacked,’ and issues around liquidity if larger institutions enter the market.

I highly recommend reading the entire piece.

Elon Musk on Bitcoin

Dalio wasn’t the only big name to comment on bitcoin this week. Tesla and SpaceX CEO Elon Musk added bitcoin to his Twitter bio.

He didn’t stop there. In a Clubhouse chat, Musk said that he supports bitcoin despite being late to the party.

"I do think Bitcoin is a good thing. I'm a supporter of Bitcoin. I think Bitcoin is on the verge of getting broad acceptance by conventional finance."

Consider Dalio and Musk’s comments as bullish reinforcement.

Even with Dalio’s reservations around regulations and future market uncertainties, his take is one of recognition for what bitcoin has already accomplished and is being used for in the real world.

Don’t Forget Michael Saylor

It can be easy to pay too much attention to the likes of Dalio and Musk. But let’s not forget Michael Saylor, MicroStrategy, and the swarm of cyber hornets championing bitcoin every chance they get.

Saylor is the tech CEO who continued to double down on bitcoin with his company’s treasury reserves in 2020. As of December 2020, MicroStrategy claimed to hold upwards of $1 billion worth of BTC!

Big Week for Saylor

This week kicks off MicroStrategy’s Bitcoin for Corporations conference where Saylor and crew will present the playbook for putting bitcoin on the balance sheets. The bitcoin portion is mixed into their World 2021 conference.

Keep an eye on institutional inflows in the weeks and months following the conference. If you thought institutions were already betting big on bitcoin, brace yourself for what comes next.

If anyone can present a roadmap for creating an institutional position in bitcoin, it’s Saylor and his team at MicroStrategy.

Final Notes

I haven’t even gotten to the rollercoaster ride created by the WallStreetBets Redditors. I’ll leave it to CoinDesk’s NLW to summarize.

Listen to his podcast, touching on how the GameStop trading action is impacting both the traditional and crypto markets.

We’re starting to see several altcoins follow similar trajectories to GME based on social media and online forum rallying. This is something to watch.

Next week, I’ll also dive deep into investor Lyn Alden’s recent analysis of ethereum. Her crypto analysis is top notch. She typically sticks to bitcoin so getting her insight into ETH is a real treat. Stay tuned for more there.

How Bitcoin Goes Parabolic

$33,573.67—the price of bitcoin today.

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