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Bridgewater Associates Founder Says Government Outlawing Bitcoin Is a Good Thing

Summary:
Ray Dalio, a billionaire investor and the founder of the world’s largest hedge fund, Bridgewater Associates has said that he believes that Bitcoin will have a similar impact as gold in the 1930s. Dalio told Yahoo Finance on Influencers with Andy Serwer that the government’s conservative approach towards Bitcoin is the right thing. He suggested that investing in Bitcoin was similar to investing in gold as a return on bonds and cash diminished due to the war. He explained: Back in the ’30s in the war years … because cash and bonds were such bad investments relative to other things, there was the movement to those other things, and then the government outlawed them. They outlawed gold. That’s why also outlawing bitcoin is a good probability. He noted that Bitcoin poses some kind of threat

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Ray Dalio, a billionaire investor and the founder of the world’s largest hedge fund, Bridgewater Associates has said that he believes that Bitcoin will have a similar impact as gold in the 1930s.

Dalio told Yahoo Finance on Influencers with Andy Serwer that the government’s conservative approach towards Bitcoin is the right thing. He suggested that investing in Bitcoin was similar to investing in gold as a return on bonds and cash diminished due to the war. He explained:

Back in the ’30s in the war years … because cash and bonds were such bad investments relative to other things, there was the movement to those other things, and then the government outlawed them. They outlawed gold.

That’s why also outlawing bitcoin is a good probability.

He noted that Bitcoin poses some kind of threat to the control of supply and demand by the government. For him, every country wants to have complete control over its currency’s demand and supply, a decentralized currency poses a threat to that sovereignty.

Dalio explained that:

Every country treasures its monopoly on controlling the supply and demand. They don’t want other monies to be operating or competing, because things can get out of control.

Although Dalio believes that Bitcoin is a new alternative store of wealth. Since the pandemic began, Bitcoin has turned some of its biggest critics into investors. After recording a new ATH close to $62,000, it is possible that the king cryptocurrency reaches $100,000 this year. At 15:16 GMT, BTC was at $54,995, a 3.08% increase over the 24 hours.

As gold and government bonds diminished during the pandemic, many investors and traders immediately diversified their income into Bitcoin. Since then, big companies and financial institutions like Tesla, MicroStrategy, Goldman Sachs have invested in Bitcoin either as treasury reserve asset or for better returns.

However, when asked if he thinks the government would ban it, Dalio cited the recent efforts to ban Bitcoin in India. He explained that though he’s not an expert, there are several ways the government can employ to ban the coin. He said:

I don’t know. I’m not an expert on that. But, there’s a whole way. My understanding, from people who are in government surveillance and so on, is yes, they can track it. They can know who’s dealing with it.

While he hasn’t mentioned a ban, Federal Reserve chairman Jerome Powell has repeatedly warned against cryptocurrencies like bitcoin. Powell said during a virtual panel discussion on digital banking on Monday:

They’re highly volatile and therefore not really useful stores of value and they’re not backed by anything. It’s more a speculative asset that’s essentially a substitute for gold rather than for the dollar.

It appears that has Bitcoin price continues to battle a bearish pressure, the existential threats of government bans will always be there.

If you have any questions and comments on Bitcoin today, use the form below to reply.


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Published under: Bitcoin

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