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Bitcoin’s limited supply makes it money‑like but its price volatility limits its use as a unit of account
  • Bitcoin’s algorithm caps the total supply at 21 million, mirroring gold’s scarcity, which gives it a store‑of‑value narrative.
  • However, daily price swings of 5‑10 % make it unsuitable for pricing goods or contracts.
  • Ray warns that without a stable unit of account, Bitcoin remains a speculative asset rather than a true currency.
  • Investors can hold a modest allocation for upside, but should not rely on it for everyday transactions.
Ray DalioWTF is Finance00:24:28

Supporting quotes

बिटकॉइन की आपूर्ति कम है और उसे पैसा समझा जाता है। Ray Dalio
Supply scarcity
बिटकॉइन में ऐसी समस्याएँ हैं… वह सभी समस्याएँ हैं। Ray Dalio
Volatility and control issues

From this concept

Bitcoin and Stablecoins – Modern Money Experiments

Ray evaluates the promise and pitfalls of Bitcoin and stablecoins. He notes Bitcoin’s capped supply makes it a potential store of value, yet its volatility limits everyday use. Stablecoins, while stable, lack yield and are still tied to fiat, positioning them as transaction tools rather than wealth stores.

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