Ray Dalio on Bitcoin

There are two purposes of money; a medium of exchange and a storeholder of wealth. And Bitcoin is not effective in either of those cases now....It’s too volatile. Because of the volatility, you can’t go next to it.

The problem with Bitcoin is that it's not an effective medium of exchange—it's not easy for me to go in there and buy things with it. And then, it's not an effective storehold of value because it has a volatility based on speculation and the like so it's not a very effective [way to save].

That's very different from Facebook's prop of a stable value currency (stablecoin) which would be effective as both as a medium of exchange and as a storehold of wealth because if you were to hold it—and the way that it's linked to the number of things it's linked to—would mean that it could be a very effective storehold of wealth. Then you have a digital currency that could be an effective medium of exchange and storehold of wealth.

There are two things that are required for a currency. The first is that you can make transactions in it—it's a medium of exchange. The second thing is that it's a storehold of wealth. . .

Bitcoin today—you can’t make much transactions in it. . . . You can’t spend it very easily. It’s not an effective storehold of wealth because it has volatility to it, unlike gold which reflects the value of money and which is more stable than the value of money. Bitcoin is a highly speculative market. . . .

Bitcoin is a bubble. It’s a shame, it could be a currency. It could work conceptually, but the amount of speculation that is going on and the lack of transactions [hurts it].