Billionaire investor Ray Dalio explained in a recent tweet he’s likely missing something when it comes to bitcoin, though what he’s missing isn’t clear considering he used the rest of his “social media time” to pass negative thoughts on the coin and explain why it could never be used as a mainstream currency.

Ray Dalio: Bitcoin Is Too Volatile

Bitcoin has done quite well as a speculative asset, but at the end of the day, it – along with various other cryptocurrencies – was created to serve as a potential payment vehicle, something it hasn’t quite managed to accomplish. The fact is that bitcoin and other cryptocurrencies have been extremely vulnerable to price swings. They are volatile, and many companies are worried about accepting the asset as a form of payment. There are still too many chances to lose out on profits, and while we may all think bitcoin is da bomb, we can understand their reasoning.

Say, for example, you walk into a store and buy $50 worth of merchandise with bitcoin. You engage in a transaction, you leave, and then tomorrow the currency goes down and that $50 turns into $25. Well, you’ll still get to enjoy everything you bought, but the profit that the company was expecting has now been reduced to half. Granted they did not turn it into fiat immediately after the transaction was over, the store has missed out.

It’s not quite fair to the retailer in question, and this is something that Dalio takes issue with. He says that while bitcoin may be doing well for the time being, its volatility is still a major problem and likely to get in the way of it serving as a mainstream currency.

In a recent interview, he comments:

It’s not good as a store hold of wealth because it’s volatility is great and has little correlation with the prices of what I need to buy… I can’t imagine central banks, big institutional investors, businesses or multinational companies using it. If I’m wrong about these things, I would love to be corrected.

Institutions ARE Using It…

Well, here’s something to consider Mr. Dalio… You can’t picture institutional investors using it? How, then, do you explain companies like MicroStrategy and Square purchasing millions of dollars-worth of bitcoin in the last few months? MicroStrategy has bought more than $400 million, while Square has bought $50 million. Both have also claimed that the asset can do wonders during times of economic strife, much like what the world is experiencing now.

While these companies may not be utilizing bitcoin to purchase physical items, they are purchasing financial stability given how weak the dollar has allegedly become over the past several months. Both have stated that bitcoin is one of the only stable assets users can expect to have right now, and this will potentially lead to more mainstream activity for bitcoin and its digital brethren.

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