Ray Dalio endorses Bitcoin as a hard currency, citing its fixed supply, longevity, and rising global adoption as key strengths.
Ray Dalio has presented a compelling argument favoring Bitcoin as currency, contending that the flagship cryptocurrency is transitioning to hard money. The billionaire observes that Bitcoin is experiencing remarkable adoption rates, which are explained by its resiliency and fixed supply in the face of global macroeconomic challenges.
Ray Dalio asserts that Bitcoin has become a “hard currency”
Ray Dalio, an American hedge fund manager, has praised Bitcoin for its consistent display of properties that render it a hard currency. He disclosed that Bitcoin is now included in the exclusive group of hard money assets, which includes precious metals such as gold and silver.
Dalio views hard money as an asset with a fixed supply that is not readily augmented. He observes that Bitcoin has established itself as a legitimate currency and is on its way to revolutionizing the financial industry. To be classified as “hard money,” an asset must function as both a dependable reserve of value and a widely accepted medium of exchange.
He argues that Bitcoin satisfies this definition, referencing its fixed supply of 21 million BTC, and criticizes fiat currencies. Dalio cautions that the most significant threat to the efficacy of a currency as a store of value is the simplicity with which its supply can be indefinitely expanded.
Over the past 15 years, Bitcoin has experienced a significant increase in value, surpassing traditional assets. Investors are currently utilizing the premier digital currency as a hedge against macroeconomic uncertainties, which is contributing to a broader cryptocurrency rally.
Rising Institutional Appetite Drives Adoption to A New High
In addition to its capacity as a store of value, Bitcoin is also gaining widespread acceptance. As on-chain data indicates, the preeminent cryptocurrency is now owned by over 100 million individuals, with daily transaction volumes exceeding $50 billion.
Furthermore, many merchants now accept Bitcoin as payment for products and services sold. Dalio’s assertions are corroborated by the Lightning Network’s surge in activity in the retail sector.
Although retail has been the primary driver of Bitcoin’s adoption since its inception, institutions are propelling the figures to new heights. Several organizations incorporate the asset into their balance statements, with Strategy (formerly MicroStrategy) as the leader.
The flagship cryptocurrency approached its all-time high last week as 16 corporations announced Bitcoin treasuries.
Nevertheless, Peter Schiff differs from Ray Dalio’s assertion that not all investors adopt Bitcoin. Schiff observes that certain investors favor gold over BTC due to its volatility compared to precious metals.
