Why Ray Dalio believes Bitcoin will never be a “reserve currency”

[avp2306]

i am thinking the reason why Ray would think why Bitcoin will never be a reserve currency because of volatility. I think government would think the same even the banks that's why not many would want to add bitcoin as a reserve currency. Well, it's not the same as before where it is like that where even banks regulates some crypto/wallet exchange. It may be due to thinking that it should replace fiat when it can be one of the options like if you want to use cryptocurrency or fiat.

Check his background he is the found of Birdgewater associates the world largest hedgefunds. Now I understand on why he said those things because hedgefunds is heavily affected by Bitcoin dominance.

Maybe his intention for that statement is to discourage people and also to create some exposure for his name.

Also I think we don't need to pay much attention on those negative statement release by certain people since as we could see Bitcoin always prove them wrong. Bitcoin is becoming a reserve currency by some countries now and numbers is growing so those statement he made is so irrelevant now.

[BitBakerr1]

Anyone who is talking down on Bitcoin or those not believe in Bitcoin is his business I really don't like arguing with people that see no good in Bitcoin investment because no matter how you argue with them they will always try to prove a point, but the thing is if I'm investing in Bitcoin and getting good profit from it I really don't need the opinion of anyone and I don't care if anyone is against Bitcoin or talking against Bitcoin, my business is to keep accumulating and holding in order to make more profit in the future, right now anyone who is saying that Bitcoin is not trustworthy I see them as people who are just wanting to be known or attention seekers, because everyone can clearly see how progressive Bitcoin investment has become, so there is no need arguing about how bitcoin is or should be, let allow Bitcoin to speak by itself through growth.

[Alpha Marine]

The only reason Bitcoin won't become a reserve currency is that the governments don't want it to be. They don't control it, they don't own it, and they don't control it.
The argument that it cannot be used as a reserve currency because you cant use it to buy much is dead on arrival. I don't see many people using gold as currency or a medium of exchange, but governments of different countries have a gold reserve.
This is simply just another person who has his view of bitcoin, and that is fine. It was not expected to be a reserve currency anyway.
Funny how he is contradicting the critics that say bitcoin is used for illicit activity when he says there is no privacy in bitcoin. If it were a Bitcoin user who asks for privacy, they would have said, "If you don't have anything to hide, why do you want it to be private?". very funny.

[Franctoshi]

By the start of the month, the price of Bitcoin was around $112000, and today it has touched the lowest bottom of $86500. In just 20 days there is a difference of around $25500. I don't say this happens forever, but we aren't predictable about the market movement. If a country held its reserve in terms of bitcoin, now the country would've experienced a downturn in its economic movement. When the price gets bumped, the country will benefit. In reality to experience such a bullish market forever is impossible.

Bitcoin is not an investment for short term gains, know this and know peace, else you won't be be able to hold it.
Secondly, if you can zoom out and stomach the short term volatility of Bitcoin and think about 4-10 years ahead, then you have no worries at all, Because historically, Bitcoin has never gone below it previous ATH after every 4years and above.

Central Banks should ask exchanges how they managed to have been storing theirs Bitcoin.
You can't change that fact that Bitcoin is transparent.
Wether they like it or not they will have no option since the mass majority are adopting Bitcoin.

[Richbased]

I think there is some sense in what Ray Dalio said because i have thought of it this way, a reserve currency is held by the Central Bank and we all know that bitcoin goes against the ethics of centralized authority which means that it will really make no sense for the Central bank to hold a currency that is decentralized as their reserve currency. Of course bitcoin can stand as a store of value but how many people can be able to hold their bitcoins till that value is actualized and how long can they be able to hold it because let's assume you bought bitcoin when the price was $120k but the price fell till $87k, you will begin to imagine how long it will take for the price to return to that $120k in order to maintain that value.

When we look at the blockchain technology it is very transparent since all transactions are visible but on the other way round it still goes against privacy because people only need to know your bitcoin addresses and they will find out how much you own in your portfolio but in the banking system, only the bank and you know how much you have in your bank account except for someone who want to show his account balance to someone else or for a legal reason through a court order.

[sunsilk]

He said that there's no privacy in bitcoin because of its public blockchain from its transactions?

But to say that bitcoin doesn't have privacy, at some point he's right if he's pointing it to the public ledger (blockchain). Bitcoin itself is pseudonymous and maybe he doesn't know that yet.

Well, how few he said he's holding? it's just a way to give his audience some validation of what he says about bitcoin is right in getting their sentiment.

[Spaceman1000$]

What Ray Dalio is highlighting is mere speculation, what does he mean by in the near future the code might be broken, is the Decentralized nature of Bitcoin a child's play to him. He is talking about privacy, when you can actually keep to your privacy with Bitcoin, maybe he prefers the Central Banks pattern where billions are rolled out in secrecy to private account of the high and mighty without due cause and nobody will know. He also mentioned about the fact that he has not much Bitcoin in his portfolio, and bitcoin is not much of a good exchange and it's volatile.  

The truth is that, if Ray Dalio had said some of these things in the early days when bitcoin was launched and in it's infant stage, I probably think a lot of people might have believed him probably because of his influence, but today people can see for themselves that despite the volatility of Bitcoin, it is one of the best investment you could ever invest in, check out the trajectory to which bitcoin has grown from inception up until this day and yet people like Ray Dalio will come out and give such negative perception about what I think he doesn't have good knowledge about.

[Fiatless]

The only reason Bitcoin won't become a reserve currency is that the governments don't want it to be. They don't control it, they don't own it, and they don't control it.
The argument that it cannot be used as a reserve currency because you cant use it to buy much is dead on arrival. I don't see many people using gold as currency or a medium of exchange, but governments of different countries have a gold reserve.
This is simply just another person who has his view of bitcoin, and that is fine. It was not expected to be a reserve currency anyway.
Funny how he is contradicting the critics that say bitcoin is used for illicit activity when he says there is no privacy in bitcoin. If it were a Bitcoin user who asks for privacy, they would have said, "If you don't have anything to hide, why do you want it to be private?". very funny.

Anybody is free to give their views about Bitcoin. He might be right that Bitcoin doesn't promote privacy as much as fiat. Most of the kidnappers in my country asked for cash, fiat ransom. This shows that it is more convenient to use fiat for criminal transactions than Bitcoin. People use Bitcoin not because they have anything to hide but they want to be free from government control.  

[Hamza2424]

I don't care what he says, he owns some bitcoins but he said he doesn't own much so maybe the amount won't be much for him but for others it might be a lot so really if someone is making such statements, we should be avoiding them.

He was not bullish in 2020 and still not today, I wonder what his condition was after 10th October dump as this tweet is from 2nd October.

His stance on what btc has become and will become and how it is not good, is really illogical and as a matter of fact, who this dude is really?

[Dogedegen]

In my opinion, he's simply describing what he's currently observing, and he's a person who understands things not through reason, but through knowledge and data, and by following their journey.

What he wrote is horribly backward and shows a false understanding of Bitcoin, at the same time you claim that he understands things through knowledge and data. Isn't that ironic? He does not know anything about Bitcoin.

Check his background he is the found of Birdgewater associates the world largest hedgefunds. Now I understand on why he said those things because hedgefunds is heavily affected by Bitcoin dominance. Maybe his intention for that statement is to discourage people and also to create some exposure for his name.

This is related to what I wrote. Many people have this horrible weakness for authority. They see Dalio running one of the largest hedgefunds and they think naturally that he knows things about any topic that he is talking about. However the reality is completely different. Ray Dalio does not understand Bitcoin, neither does Elon Musk, Jeff Bezon, Mark Zuckerberg, Bill Gates or any of the other successful people. Their success in a respective field does not give them the capability and knowledge to understand Bitcoin, nothing does. Richness does not mean knowledge, wisdom or understanding. That is the basic fallacy that many fall for.

The only reason Bitcoin won't become a reserve currency is that the governments don't want it to be. They don't control it, they don't own it, and they don't control it.

This does not matter except temporarily. Bitcoin does not give you an option. You will have to adopt it at some point or you will fall behind everyone. Everyone will adopt it at the price that they deserve.

His stance on what btc has become and will become and how it is not good, is really illogical and as a matter of fact, who this dude is really?

He's a rich nobody, his money hit him in the head that is usually how it goes with these types. It is better not to say anything that to make misleading statements about things that one does not understand, like he did here.

[uchegod-21]

Ray Dalio is not a hater, he just needs to understand alot of things about Bitcoin so he would really know his stand regarding Bitcoin. We have alot of people like him; they love bitcoin and even have some in their possession but are still stuck with the traditional mindset. They just want certain things done the traditional way which they are already used to. I am not surprised people like him do not have 100 percent confidence in bitcoin yet. By now, those who fully understand Bitcoin will stop using volatility against it everytime discussions about Bitcoin come up.

[Mrbluntzy]

He is talking about privacy, when you can actually keep to your privacy with Bitcoin, maybe he prefers the Central Banks pattern where billions are rolled out in secrecy to private account of the high and mighty without due cause and nobody will know. He also mentioned about the fact that he has not much Bitcoin in his portfolio, and bitcoin is not much of a good exchange and it's volatile.  

His opinion is centred on government and banks, he is only giving reasons why he thinks that Bitcoin won't be considered a real reserve currency for government and the government institutions, he is not against Bitcoin because he also have some Bitcoin as he mentioned. Based on what he is saying, you can verify if US have actually bought any Bitcoin for their reserve apart from the ones that have been ceased. In Ambatman's comment, he pointed out a fact which I think that's what Dalio is saying, they won't take Bitcoin as a reserve currency because Bitcoin is what Fiat is not, Bitcoin is decentralized and Fiat is not, Bitcoin network is open to everyone there is no privacy but the government wants privacy for themselves but not for their citizens, that's just what all this is all about. Why should we worry about  making Bitcoin a reserve currency? Bitcoin doesn't even need to become the government reserve currency for it to fulfill its goal.

[yhiaali3]

It's no surprise, because now, with this huge drop in Bitcoin's price, many gloating voices will emerge, saying, "Didn't I tell you so?" "Didn't I warn you?"

When Bitcoin's price peaked at $126,000, they all fell silent, and we didn't hear a peep from them. But today, they've come out and started shouting and questioning Bitcoin, claiming that gold is better, and so on. And before long, we'll start hearing the same old phrases like "Bitcoin is dead," and so forth. All of this is nonsense.

[Alpha Marine]

He might be right that Bitcoin doesn't promote privacy as much as fiat. Most of the kidnappers in my country asked for cash, fiat ransom. This shows that it is more convenient to use fiat for criminal transactions than Bitcoin.

That is why I always laugh when people talk about how Bitcoin is used for illicit activity. Like other currencies is different. Criminals don't feel comfortable using Bitcoin, as critics would like people to believe. Bitcoin is too transparent to be a go-to channel for criminals. They have to be extra careful to make sure those addresses do not link to them in any way. It may sound easy, but one mistake is all it takes, and whatever is done on the network stays there forever. This doesn't mean criminals don't use it; they do, but just not at the rate that critics claim.

[Hatchy]

Ray Dalio is not a hater, he just needs to understand alot of things about Bitcoin so he would really know his stand regarding Bitcoin. We have alot of people like him; they love bitcoin and even have some in their possession but are still stuck with the traditional mindset. They just want certain things done the traditional way which they are already used to. I am not surprised people like him do not have 100 percent confidence in bitcoin yet. By now, those who fully understand Bitcoin will stop using volatility against it everytime discussions about Bitcoin come up.

Skepticism about Bitcoin is common. People like Ray understands bitcoin primary function but doubt its readiness as a global currency. They worry that the government will eventually influence or break Bitcoin's code, which will not happen now or in the future. This fear is rooted in the government's history of influencing every other system. The reason banks resist Bitcoin is straightforward. Banks use non transparent systems where ledgers are not open to the public. This lack of transparency allows for manipulation, which is why banks will never fully embrace an open, public ledger like Bitcoin's.

[Alphakilo]

One thing for one is that you OP, failed to share your opinion on the matter other than what Ray Dalio said.
Everyone is entitled to their opinion when it comes to how they perceive Bitcoin to be.
While some think it can assure wealth with a good long term investment strategy, others think having a reserve or mining it or investing in spot ETF or even trading BTC on the market is their own way to enjoy its benefits better.

What matters now as a potential Bitcoin investor, is how you perceive BTC to be. Do you see it as a realistic investment that can assure you wealth with a long term DCA strategy or as a hedge against inflation in your country or as a channel to explore to make money more for your business? Your reasons matter more than what Dalio thinks, because Bitcoin is working as they said it would originally and more crypto currencies has risen because of its success, alongside other technology and innovations that has risen because Bitcoin became a reality.

[shield132]

I think that Bitcoin is a great reserve currency. In reality, it's not a very good currency for payments because it's slow and when many people use it, it becomes expensive but it has a 21 million limited supply, it's the most adopted cryptocurrency, has the highest market cap among other cryptocurrencies and is the most trusted one. Every cryptocurrency follows Bitcoin's direction. If Bitcoin's price increases, altcoins increase too and if it decreases, they decrease too.
We live in a digital era. Gold is an old-fashioned form of reserve. In the era of digital technologies, we need a digital reserve currency too, not only gold alone. Bitcoin is a great choice for that. It's decentralised, very secure and open-source, which makes it an ideal candidate.

If he thinks that because of blockchain, Bitcoin is very public and has no privacy, then that's good for Bitcoin to be a reserve currency because we will know who owns how many coins and where they send them. Transparency is important, isn't it?

[nemesis_incarnate]

It's no surprise, because now, with this huge drop in Bitcoin's price, many gloating voices will emerge, saying, "Didn't I tell you so?" "Didn't I warn you?"

When Bitcoin's price peaked at $126,000, they all fell silent, and we didn't hear a peep from them. But today, they've come out and started shouting and questioning Bitcoin, claiming that gold is better, and so on. And before long, we'll start hearing the same old phrases like "Bitcoin is dead," and so forth. All of this is nonsense.

It's a cycle that repeats itself each and every time we see a decline in the price..

At least these voices become not so loud

[coolcoinz]

Somebody should get Ray to talk to Elizabeth Warren or Christine Legarde because he claims that all bitcoin transactions are visible and there's no privacy and these women fight bitcoin because there's too much privacy and anonymity 😃

At least Ray owns some bitcoin, but he did not say why. Does he trust bitcoin only a little? 🤔

Even if btc doesn't become a reserve currency it's still a unique and scarce asset that can be hidden and moved around the world 24/7 with no middle man. Show me anything close to that. The volatility is already much lower than it used to be and going to be even lower in 2-3 years.

[Orpichukwu]

Anybody is free to give their views about Bitcoin. He might be right that Bitcoin doesn't promote privacy as much as fiat. Most of the kidnappers in my country asked for cash, fiat ransom. This shows that it is more convenient to use fiat for criminal transactions than Bitcoin. People use Bitcoin not because they have anything to hide but they want to be free from government control.  

Those kidnappers are asking for fiat because that's exactly what they could be in need of; since they will basically spend most of their time in the bush, they will need to spend only cash, and not just for privacy reasons only. There they request what they consider easy for their victim to pay.