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  • Ray Dalio: What I Think of Bitcoin

    From bridgewater.com

    I am writing this to clarify what I think of Bitcoin. Please pay attention to what I am saying here and not what those in the media are saying I said because this is reliable. I am finding that those who want to promote Bitcoin (which is most people) are characterizing it one way while those who are against it (which are a few scared souls cowering in a corner) are characterizing it another way. As with most things I comment on, the reality has pros and cons and I am trying to be as accurate as possible to communicate what I understand these to be. To reiterate, as I am not a Bitcoin/cryptocurrency expert, I believe ... (full story)

  •  Guest
  • | IP XXX.XXX.108.126
Excellent view. Moderate, wise, reasonable.
Bitcoin relies on Faith , Faith and Faith .
it has nothing behind it, it is the same as a Fiat currency but without the "regulation" or CB 'controls'.
Gold has an intrinsic value, is easily transferrable,recognisable , and exchangeable currencies have tangible trading value as related to the supply and demand for commodities ( worldwide ) and established over hundreds of years.
(not to mention the FX Trading Market that we all make money from)
Bitcoin is no different.

but there are some interesting quirks to it:
Loose the password to your wallet - three times on a failed attempt, .... and guess what ? you have lost your wallet.
Finito, Zip.. Nada!
your investment is at the total mercy of hackers who manipulate the Blockchain "Associative Hierarchical network chain" (and those of you with an IT /AI background know exactly what i mean )
and there is absolutely NO regulation to fall back on ( not that i am saying CB's and Fed offer any "regulation" )
at the end of the day it is all Play Money.
and that my FX friends is probably a good way to look at Bitcoin ?
i have personal friends ( Ex NZ now living in Estonia ) who made a fortune out of Bitcoin, but only because they got in at the beginning,
the beginning of the Ponzi - so to speak.
and do not forget, the only way to practically benefit from your large BTCUSD gains is ... ? to convert it to a usable fiat currency

Caveat Emptor
and BTW who would willingly enter a trade to knowingly lose 80% of your investment ?
the article speaks for itself, and unfortunately belies the ineptitude of its author
  •  Guest
  • | IP XXXX:d94b:6e3b
"I am not a Bitcoin/cryptocurrency expert, I believe my views are not valuable enough to be relied on so I shouldn’t put them out."

He says everything in the first sentence
Quoting aquavox
and BTW who would willingly enter a trade to knowingly lose 80% of your investment ? the article speaks for itself, and unfortunately belies the ineptitude of its author
You don't have to convert it to cash! More and more transactions are being conducted in bitcoin.
I have recently concluded a test on a few bitcoin so-called "exchanges". One of them was binance. My verdict is that they will strip of you of your money if you did a few transactions a week. The split your buy or sell order in to small chunks so that they can charge you their fixed commission/fee on each piece separately. a total scam if you ask me.
Quoting Guest
"I am not a Bitcoin/cryptocurrency expert, I believe my views are not valuable enough to be relied on so I shouldn’t put them out." He says everything in the first sentence
That's just the Humble nature of this Legend. If you don't know Ray Dalio, then I doubt you know anything about the financial world. I mean no disrespect.
Quoting ieltsMike
{quote} You don't have to convert it to cash! More and more transactions are being conducted in bitcoin.
The guy does not have an issue with individuals holding or transacting in Bitcoin.

One of his few points is corporate holding, say a multi National company that wants to diversify excess cash, say $100m after a very full portfolio

They could buy today and next few weeks their $100m could become $180m or $55m.

Those are the possible risks involved.
As you guys spoke these wise words bitcoin just broke the trend line and hit 38 thousand.
25% gain in 2 days. Can forex give you that kind of opportunity? You'll be lucky to get 20 pips in EUR/USD in 2 days.
Yeah! .... when someone cannot differentiate between Money & Currency and then goes further to equate non-tangible (block chain) to tangible (gold), my attention span becomes that of a fruit-fly ..... BTW, we call the 4th digit of our fiat "pips", BTC doubles that to 8 digits!!! I wonder what that is called? .... anyone has ideas?
Quoting Nick.
As you guys spoke these wise words bitcoin just broke the trend line and hit 38 thousand. 25% gain in 2 days. Can forex give you that kind of opportunity? You'll be lucky to get 20 pips in EUR/USD in 2 days.
It's called volatility. I'm happy with +20pips in 2days. But then again.. I don't treat my trades as a gamble
Quoting Ojiego
Yeah! .... when someone cannot differentiate between Money & Currency and then goes further to equate non-tangible (block chain) to tangible (gold), my attention span becomes that of a fruit-fly ..... BTW, we call the 4th digit of our fiat "pips", BTC doubles that to 8 digits!!! I wonder what that is called? .... anyone has ideas?
I can't get my head around why anyone would call Bitcoin a digital currency. I can understand a digital commodity, but not currency.

I also can only see downside tail risk in owning Bitcoin. Whilst fed "printer go brrrr" it is naturally going to remain a frothy asset class until the day of reckoning arrives. If I did want to invest a tiny %, I then go to Binance and the likes and see that they want to charge me at least 20x in commission as to what my other brokers charge. There is the general vibe that these exchanges are far from professional when compared to CME etc.

Just my view.... feel free to pull it apart and educate me.... but I think I'll leave crypto for now.
Quoting aquavox
Bitcoin relies on Faith , Faith and Faith . it has nothing behind it, it is the same as a Fiat currency but without the "regulation" or CB 'controls'. Gold has an intrinsic value, is easily transferrable,recognisable , and exchangeable currencies have tangible trading value as related to the supply and demand for commodities ( worldwide ) and established over hundreds of years. (not to mention the FX Trading Market that we all make money from) Bitcoin is no different. but there are some interesting quirks to it: Loose the password to your...
Fiat currency = represents peoples time , work . Where the government collects tax in every profit made or salary , IT HAS A VALUE BEHIND IT . The rise in crypto and stock this year is the result of the U.S printing , those trillions dollar will go somewhere and apparently its going there . As every action will have consequences , the result of the printing will worsen the homeless crisis and inequality.
Tulips. In time all things find their true value.
Quoting aquavox
and BTW who would willingly enter a trade to knowingly lose 80% of your investment ? the article speaks for itself, and unfortunately belies the ineptitude of its author
Are you saying that trading in my brokerage account I buy 1 BTC today for lets say $36000 (roughly the price as I type) and then if it were to run up to the previous high and I sold it at $40000 I would lose a whopping $32000 or 80% and be left with $8000 dollars? Or do you mean 80% of my initial $36000 and be left with $7200? Either way I have to believe you are mistaken or nobody would ever trade Bitcoin in the first place.
Quoting RBlackburn
{quote} It's called volatility. I'm happy with +20pips in 2days. But then again.. I don't treat my trades as a gamble
yeah a fellow doesn't need huge moves just consistent ones and daytraders can often pull well over 100 pips trading the oscillations inside that 20 pip move. Bitcoin is an exciting instrument to trade but a the end of the day its just that, another instrument to trade.
  •  Guest
  • | IP XXX.XX.239.138
Taking a point of view from Dr. Smith, from the original "lost in space"
[quote=harcos;13384893]{quote} A I would lose a whopping $32000 or 80% ...."
I was simply quoting what the original Bridgewater "news" article said ...
if you read the complete article you will understand , and also who said it.
and yes, it is not my idea of a good trade, by any means.

i have no doubt it is prefectly "tradeable " - and i too made a small profit on its retrace last night.
but also don;t forget the perception and belief in "value" can often turn out to be just that - a belief system
(as someone mentioned , tulip mania, ...1929 etc... )
you could trade the rise and fall of sea shells on the tide if someone set up an exchange to do that
Quoting aquavox
Quoting harcos
{quote} A I would lose a whopping $32000 or 80% ...." I was simply quoting what the original Bridgewater "news" article said ... if you read the complete article you will understand , and also who said it. and yes, it is not my idea of a good trade, by any means. i have no doubt it is prefectly "tradeable " - and i too made a small profit on its retrace last night. but also don;t forget the perception and belief in "value" can often turn out to be just that - a belief system (as someone mentioned
...
I read it but I don't think you understand what he meant by losing 80%, that was the metric he was using for risk. He wasn't saying you are goin to lose it for sure but that was the risk of the trade. That doesn't make it a bad investment for all we know the potential return could 2000% and that would be a sweet deal. You are obviously a proficient trader so you know that percentage needs to be balanced with probability to equal profitability . I know you dislike the non regulated parts and the susceptibility to being hacked etc. and that is your prerogative I was just throwing in my 2 cents.
  •  Guest
  • | IP XXX.XX.115.215
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  • Posted: Jan 28, 2021 10:48pm
  • Submitted by:
     Newsstand
    Category: Educational News
    Comments: 20  /  Views: 8,293