A lot of Bitcoin investors and analysts predict that in the next decade, we might see Bitcoin’s price reach $1 million. The idea behind this is the growing adoption and limited supply of Bitcoin against the falling dollar. This gives BTC an unlimited scope to grow. But how practical this would be is something we need to know. This is why Ray Dalio rejects the possibility of $1M worth Bitcoin. His idea is that there is a limitation on the price of BTC in relationship to other similar assets.
Ray Dalio on Bitcoin’s price
Ray Dalio is not against Bitcoin as he has spoken in favor of it a lot of times. Here he shares just his thoughts on where Bitcoin could reach in the future. In a recent interview with Lex Fridman, when asked if he thinks Bitcoin could reach $1M, he said that “I don’t think that’s possible.”
Ray Dalio explained, saying that we all know that there is a limited amount of Bitcoin as well as Gold. Now, suppose you compare the two, which is very common. In that case, BTC’s market cap is nearly $1 trillion, and Gold’s market cap (not including jewelry and central bank’s usage) is nearly $5 trillion. So, basically, Bitcoin is currently valued at 20% of Gold which seems right to him.
Ray Dalio doesn’t think that Bitcoin will be able to cross GGold or be worth more than it. But this is just his thought as he rightfully admitted that he doesn’t know what the right answer is. Though, using Gold as a measure for the same idea of BTC outpacing it seems unlikely.
A simple take on BTC’s price in the future
While we all think that a limited supply and an unlimited demand means that the price of BTC has infinite possibilities. In theory, that does seem right, but if you think an asset is worth something only if someone is willing to buy it at that price. With the rise of new advanced crypto projects that are also sufficiently decentralized means that we can’t be sure if the demand for BTC will be high enough in the next decade for it to be worth over $1M. So, yes, there is definitely a limit.
What are your thoughts as Ray Dalio rejects the possibility of $1M worth Bitcoin? And do you think that BTC could reach that high? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.