Billionaire investor Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, believes bitcoin could have a similar fate to gold in the United States during the 1930s.
“[B]after the 1930s, because cash and bonds were such bad investments in relation to other things, there was a movement towards these other things, and then the government outlawed them, “Dalio told Yahoo Finance Wednesday “. They banned gold.
“That’s why banning bitcoin is also a good probability,” he said.
Bitcoin, the largest cryptocurrency in terms of market value, has been “proven” since its blockchain has not been hacked and has many followers, Dalio said. “It’s an alternative wealth reserve. It’s like digital cash. And those are the benefits.”
“So I think it would be very likely that you would have it under a certain set of illegal circumstances in the way that gold was banned,” Dalio said.
Dalio explained that “each country hoards its monopoly on controlling supply and demand. They don’t want other money to be operating or competing, because things can get out of hand.”
As an example, Dalio cited India and its efforts to ban cryptocurrency.
Another story is that it can be effectively banned in the US.
“I don’t know. I’m not an expert on that,” Dalio said. “But, there’s a whole way. My understanding, of the people who are under government surveillance, etc., is that yes, they can follow up. They can know who’s in charge.”
However, James Ledbetter, editor of the fintech technology bulletin FIN and a CNBC contributor, previously told CNBC Make It that it would be quite difficult for the government to effectively ban bitcoin.
While there is “concern or risk surrounding the regulation” of bitcoin, “I don’t think even a concerted effort between different countries and different central banks can shut down bitcoin,” Ledbetter said. “I don’t think it’s technologically possible. But there are ways to regulate bitcoin.”
While he has not mentioned a ban, Federal Reserve Chairman Jerome Powell has repeatedly warned against cryptocurrencies like bitcoin.
“They are highly volatile and therefore not a really useful value and are not supported by anything,” Powell said during a virtual roundtable on digital banking on Monday. “It’s more of a speculative asset that is essentially a substitute for gold instead of the dollar.”
Dalio has previously addressed the government banning Bitcoin.
In a January post titled “What I Think of Bitcoin” on the Bridgewater Associates website, Dalio wrote that while “not an expert on bitcoins / cryptocurrencies … I suspect Bitcoin’s biggest risk is taking success, because if he succeeds, the government will try to kill him and they have a lot of power to succeed. “
Dalio also wrote that a “better alternative” to bitcoin would probably arrive and displace it “because that’s the way the evolution of everything works,” he said. “I see it as a risk.”
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