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The Bridgewater Associates co-founder and chief investment officer, Ray Dalio, says that there is a good probability that the government will outlaw bitcoin in the same way gold was outlawed in the U.S. in the 1930s.
Ray Dalio Thinks Governments Can Outlaw Bitcoin
Ray Dalio shared his view on whether the government could outlaw bitcoin in an interview with Yahoo Finance Wednesday.Investing Founder Ray Dalio: Governments Can Outlaw BitcoinRay Dalio commented on whether the government can outlaw bitcoin in an interview with Yahoo Finance on Wednesday.His clients include endowments, governments, foundations, pensions, and sovereign wealth funds.
Dalio believes that bitcoin may suffer a similar fate as gold did in the U.S. during the 1930s. “Like back in the ’30s in the war years … cash and bonds were such bad investments relative to other things, there was the movement to those other things still, and then the government outlawed them … They outlawed gold,” he recalled, elaborating:
That’s why also outlawing bitcoin is a good probability.
Besides outlawing gold, Dalio added that “they also established foreign exchange controls, because they don’t want the money to go elsewhere.”
In the decade after the war, when money was in short supply because of low interest rates, it became the government’s policy to outlaw cash and bonds. That’s why keeping bitcoins unlawful is a good probability.They don’t want other monies to be operating or competing, because things can get out of control,” the Bridgewater founder opined:
So I think that it would be very likely that you will have it, under a certain set of circumstances, outlawed the way gold was outlawed.
It’s impossible for them to allow other currencies to operate or compete, because then things can get out of hand,” the Bridgewater founder said: “So I think you’ll have it outlawed just like gold was.India today is making a move to outlaw it– outlaw possession of it,” he pointed out. The Indian government is currently working on a cryptocurrency bill and there have been reports that it may ban cryptocurrencies like bitcoin. However, no official announcement has been made and the crypto industry is hopeful that there will be not an outright ban on cryptocurrencies.
Dalio was also specifically asked if he thinks it is possible for the government to ban bitcoin.It has been reported that there has been no formal announcement and the crypto industry hopes that there will not be a ban on cryptocurrencies outright.Dalio was also asked directly whether he felt the government could potentially ban bitcoin.I don’t know– like, I’m not an expert on that.”
The billionaire hedge fund manager has been learning about bitcoin over the recent months. He admitted in November that he may be wrong about bitcoin but was worried about governments outlawing cryptocurrency. He then said bitcoin “is one hell of an invention” that could “serve as a diversifier to gold and other such storehold of wealth assets.”
A few hours later, he said bitcoin was a great invention because it would be a great diversifier to gold and similar storehouse assets.Gemini co-founder Cameron Winklevoss wrote: “Bitcoin may have similar properties to gold but outlawing decentralized software is a much different problem.The Gemini co-founder Cameron Winklevoss writes: "Bitcoin may have the same properties as gold, but outlawing decentralized software presents a different kind of problem.
Some people accuse the Bridgewater executive of attempting to manipulate the market to buy cheap coins, noting that a growing number of major corporations are investing in BTC. Recently, Goldman Sachs said it sees huge institutional demand for the cryptocurrency and Visa anticipates bitcoin becoming “extremely mainstream.” Deutsche Bank says bitcoin is now the third-largest currency, after the dollar and the euro. Furthermore, Morgan Stanley is getting ready to offer bitcoin exposure to wealthy clients and other banks are expected to follow suit.
Do you think about Ray Dalio’s bitcoin warning? Let us know in the comments section below.
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