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A former Bitcoin opponent, Ray Dalio has continued to evolve over the past few months. Like many people, the great monetary inflation we've been experiencing since March 2020 has changed his outlook. Ray Dalio has been impressed by the resilience of Bitcoin.
Faced with the ever-increasing odds of success of the Bitcoin revolution in the long run, Ray Dalio finally decided to buy Bitcoin himself.
Without allocating 5% of his portfolio as Paul Tudor Jones did, Ray Dalio put some dollars in Bitcoin just in case. It would be a shame, after all, to miss out on an asset whose market cap will eventually exceed that of gold over the next decade.
Ray Dalio thinks regulators and governments will kill Bitcoin
Despite this, Ray Dalio continues to be skeptical every time he has to talk about Bitcoin in a TV interview.
Interviewed by CNBC on September 15, 2021, on Squawk Box, Ray Dalio explained the following:
“I think at the end of the day if it’s really successful, they will kill it and they will try to kill it. And I think they will kill it because they have ways of killing it.”
Here, Ray Dalio is referring to regulators and governments, who he believes would have the power to kill Bitcoin if its success became as huge as all Bitcoiners have been imagining for years.
Ray Dalio is right to think that the powerful in the actual system will try to kill Bitcoin...
The first thing I want to say after this interview with Ray Dalio is that he is right. Ray Dalio is right when he says that regulators and governments will try to kill Bitcoin at some point if its market cap continues to grow.
As long as Bitcoin had a market cap of less than $100 billion, it was still smiling. Once Bitcoin showed in February 2021 that it could exceed $1 trillion in market cap and go much higher, things started to change.
For several, regulators, central bankers, and governments never miss an opportunity to criticize Bitcoin as extremely dangerous to the people.
Understandably, these powerful people do not want the people to take back the power over the fruits of their labor. In their eyes, it is inconceivable that monetary power should be taken out of the hands of the states. However, the money belongs to the people and it is the people who should have this power.
Bitcoin corrects this anomaly of recent history.
... But he is wrong in not understanding that this will only make Bitcoin even stronger
If Ray Dalio is right on this first point, he is wrong on the outcome of governments' possible attempts to kill Bitcoin. Bitcoin was created to expose an opaque and unfair system. The more the powerful attack Bitcoin, the stronger Bitcoin becomes.
It becomes stronger as more and more people seek an alternative to the will of governments and regulators to dictate to them.
When these millions of people seek to escape the flaws of the current system, they will naturally turn to the best alternative available to them: the Bitcoin system. The regulators' attempts to kill Bitcoin will only make more people want to discover this new system.
Once they discover this new decentralized system with its protective monetary policy for its users, they will be delighted to see that because of its leaderlessness and decentralization, Bitcoin is unstoppable.
Governments will not be able to attack hundreds of millions of users around the world. Moreover, some countries will find it advantageous to support Bitcoin to attract all Bitcoiners. El Salvador has already done this by making Bitcoin an official currency in its country.
The more time that passes, the greater the solutions for Bitcoin owners will be.
Final Thoughts
Bitcoin will continue to function as it has 99.99% of the time since its launch on January 3, 2009. The system will continue to grow and will only be strengthened by attacks from the powerful in the current system.
Ray Dalio can rest assured that his investment in Bitcoin will continue to be secure and provide him with huge profits in the future. That is if he keeps his faith in the Bitcoin revolution and is patient. On the last two points, however, I have some doubts about him.
Some Reading
Will Evergrande Be the Lehman Brothers of China? The whole world will now be watching the Chinese government’s attitude toward Evergrande.
Now Is the Time To Buy Bitcoin With Money You Can’t Afford To Lose - The change in the narrative around Bitcoin is major.
Income Inequality — Here’s How Much Money You Need To Earn To Join the Top 1% in Your Country - Income inequality is already enormous and will continue to grow in the years to come.
