There is a limitation on the price of bitcoin, says US-based billionaire and hedge fund manager Ray Dalio. He believes that the $1 million per bitcoin scenario is not possible under the current circumstances. Dalio highlighted that the total market capitalization for bitcoin is very much far from gold’s market value.
In an interview with Lex Fridman, Dalio said there is a certain amount of bitcoin and there is a certain amount of gold. The Bridgewater boss pointed out that he would prefer to use gold as a benchmark. The current market cap of the whole crypto market is about $2.2 trillion.
He highlighted the fact that bitcoin is neither used by central banks nor jewelers across the world. Whereas, gold is. And if one takes out the money that is in gold, not used for jewelry or by central banks, it sums up to about $5 trillion. Dailo said if an investor, right now, were to have a portfolio that has gold, bitcoin is worth about 20% of the value of gold.
He believes bitcoin will never be worth more than gold. But then added that he doesn’t really know. Dailo says that logically there is a limitation on bitcoin’s price in relation to other assets like it.
The billionaire said he is impressed with bitcoin and in the past 10 to 11 years, its programming has held up. Dailo said it hasn’t been hacked and has a fast adoption rate.
In February, this year, MicroStrategy CEO Michael Saylor told CNBC that bitcoin’s market value would reach $100 trillion one day. He said bitcoin would become a stabilizing influence on the global financial system. Saylor had also said that BTC will flip gold and subsume the entire gold market cap.