The World’s Largest Hedge Fund Doesn’t Believe In Bitcoin Being The Currency Of The Future

It’s a predicament that bitcoin continues to surge

Image credit: Cointelegraph

This entire process makes use of several intermediaries that cryptocurrencies don’t.

In essence, most cryptocurrencies like Bitcoin and Ethereum are decentralized. Monetary transactions are governed through government-controlled currencies, which cryptocurrencies don’t fall under.

Image: Taken from Ray Dalio’s Twitter account

Over the past five years, the price of bitcoin went up 20 times and subsequently went down 83 percent and it rallied over $40,000 recently!

The technology behind cryptocurrencies might have a future, but the economics of cryptocurrencies themselves don’t enable them to be deemed as a store of value or a stable medium of exchange.

Decentralized currencies like bitcoin or Ethereum won’t necessarily be used as a “medium of exchange”.

Thus, cryptocurrencies might be a great investment but if it fails to acknowledge itself as a proper “medium of exchange” its future as being identified as “money” is still questionable.

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