Billionaire Ray Dalio Says Bitcoin Is Becoming Hard Currency: Here’s Why

Ray Dalio has made a strong case for Bitcoin as money, arguing that the flagship cryptocurrency is now becoming hard money. The billionaire notes that Bitcoin is seeing impressive adoption rates, given its fixed supply and resiliency amid global macroeconomic challenges.

Bitcoin Has Earned the Label of Hard Currency, Says Ray Dalio

American hedge fund manager Ray Dalio has hailed Bitcoin for its streak of properties that qualify it as hard currency. He revealed that Bitcoin is now joining the exclusive league of hard money assets, rubbing shoulders with precious metals like gold and silver.

For Dalio, hard money is an asset with fixed supplies that cannot be easily increased. He notes that Bitcoin has earned its place and is on its way to changing the face of money. To be considered hard money, an asset must serve as both a widely accepted medium of exchange and a reliable store of value.

He suggests that Bitcoin fits this definition, citing its fixed supply of 21 million BTC, while criticizing fiat currencies. Dalio warns that the greatest risk to a currency’s effectiveness as a store of value is the ease with which its supply can be expanded indefinitely.

Bitcoin has surged in value, outperforming traditional assets over the past 15 years. Currently, it is fueling a broader cryptocurrency rally, as investors turn to the flagship digital currency to hedge against macroeconomic uncertainties.

Adoption Skyrockets, Led by Rising Institutional Appetite

Beyond its performance as a store of value, Bitcoin is also achieving widespread acceptance. According to on-chain data, more than 100 million individuals now own the premier cryptocurrency, with daily transaction volumes exceeding $50 billion.

Moreover, an increasing number of merchants are accepting Bitcoin as payment for goods and services. On the retail front, activity on the Lightning Network is surging, supporting Dalio’s assertions.

While retail has driven Bitcoin’s adoption since its debut, institutions are turbo-charging the numbers. Led by Strategy (formerly MicroStrategy), several companies are adding the asset to their balance sheets.

Last week alone, 16 companies announced Bitcoin treasuries, driving the flagship cryptocurrency near its previous all-time high.

However, Peter Schiff takes a different stance from Ray Dalio, arguing that not all investors are embracing Bitcoin. Schiff notes that some investors prefer gold over BTC, citing its volatility compared to precious metals.