Ray Dalio: Bitcoin | AI Podcast Clips

Lex Fridman asks Ray Dalio about the potential for Bitcoin or other digital currencies to become a common store of value and medium of exchange, especially if traditional currencies fail. Dalio expresses skepticism about Bitcoin's current effectiveness as both a medium of exchange and a store of value due to its volatility and difficulty in use. He suggests that a stable value digital currency, potentially like Facebook's proposed currency, could be more effective if linked to multiple assets. Dalio highlights significant hurdles for digital currencies, including government approval, which poses a threat to central bank power, and the need to build public confidence. He believes it will be a very long time, if ever, before digital currencies rival gold as a trusted store of value, noting gold's thousands of years of track record and its role for central banks concerned about other currencies. He concludes that a future without central banks, where a non-controlled currency is primary, is a very remote possibility.