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Dalio Admits "I Might Be Missing Something" As Bitcoin Surges Above $18,000
• Zero Hedge
Source: Bloomberg
Getting ever closer to its all-time record high...
Source: Bloomberg
As crypto prices soared overnight, Bridgewater Associates founder Ray Dalio stepped back into the fray, saying in a Twitter thread that "I might be missing something about Bitcoin so I'd love to be corrected."
... My problems with Bitcoin being an effective currency are simple. They are that:
1) Bitcoin is not very good as a medium of exchange because you can buy much with it (I presume that's because it's too volatile for most merchants to use, but correct me if I'm wrong)...
2) it's not very good as a store-hold of wealth because it's volatility is great and has little correlation with the prices of what I need to buy so owning it doesn't protect my buying power, and...
3) if it becomes successful enough to compete and be threatening enough to currencies that governments control, the governments will outlaw it and make it too dangerous to use.
Also, unlike gold which is the third highest reserve assets that central banks own, I can't imagine central banks, big Institutional investors, businesses or multinational companies using it. If I'm wrong about these things I would love to be corrected. Thank you.
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2 Comments in Response to Dalio Admits "I Might Be Missing Something" As Bitcoin Surges Above $18,000
Those who comment on things they don't own look foolish.
Bitcoin as it is won't work. The numbers of transactions necessary to make it commonplace among the people, will never fit the small number of transactions allowed in a block. If Block sizes are increased, the Internet couldn't correlate and handle all the transactions that would be made. Banks can, because their ledgers aren't on the Internet like the blockchain ledger is. The size of the blockchain would rapidly become so extremely bloated, that nobody could run a full node without having thousands of gigabytes of drive space. Bitcoin would become centralized in the few places that held this high amount of memory. Presently, there is little being done publicly to change these inherent problems with Bitcoin.