Billionaire Ray Dalio On Why Banks Won’t Store Bitcoin

Key Takeaways

there's a growing movement to make Bitcoin a reserve digital currency and you talk a lot in the book about the Chinese un becoming a potential Reserve currency in the future do you see a future there for Bitcoin as well as a potential Reserve there's two purposes of money uh money is a medium of exchange but it also has to be a storehold of wealth and I think that the issues with Bitcoin are that's easily traceable therefore means that governments can control it and the biggest problem with governments is that right now they have their own money problem and you can't trust them and if Bitcoin became too much of a good alternative they'd get rid of Bitcoin so I think it's been a tremendous accomplishment by Bitcoin to have had the programming that workplace way into it having tests uh stood the test of time but I I don't think it's essential banks are going to hold Bitcoin as a source of reserves I don't think it'll be a big alternative of it we talk a lot about it but the total value of Bitcoin is a little over 700 billion dollars which is small like if you went to uh looked at Microsoft Microsoft that one stock is significantly larger so I think too much is being made on bitcoin so we're entered a period in which what is the storehold of wealth I think um people are going then into holding tangibles it could be real estate and gold will probably play a larger role but there'll be a competition nfts will they play a role what is this do you buy your stake in the universe you're real estate the metaverse um you know so we don't know where the storehold of wealth will be but we do know by the way that there are many more claims of financial wealth than there is financial wealth to go around the amount of value of financial wealth stocks bonds and so on dwarfs the total amount of real wealth and that's a problem because there's no purpose of the financial wealth and to buy real wealth and so when the ratio gets very high so that there's a lot of stored up money power and you think that you could sell your financial assets and buy your tangible assets well when it gets so large that's impossible and then you have a monetary inflation thank you [Music]