Ray Dalio, co-founder and chief investment officer at Bridgewater Associates, says there is a good chance that the government in the 1930s will outlaw gold in the US, declaring Bitcoin illegal.
Ray Dalio thinks governments can outlaw bitcoin
Ray Dalio shared his views on whether Bitcoin could be outlawed in an interview with Yahoo Finance on Wednesday. He is the co-founder and chief investment officer of Bridgewater Associates, the world’s largest hedge fund company. Its clients include endowments, governments, foundations, pensions and sovereign wealth funds.
Dalio believes that Bitcoin may have originated in the U.S. in the 1930s. “Like the s0s in the war years … there were such bad investments in cash and bonds compared to other things, those other things were still in circulation, and then the government outlawed them … they outlawed gold,” he recalled.
That’s why it’s even more likely that Bitcoin will be outlawed.
In addition to outlawing gold, Dalio added that “they also established foreign exchange controls because they did not want the money to go elsewhere.”
“Every country has its monopoly values to control supply and demand. They do not want other money to run or compete, as things can get out of control,” said the founder of Bridgewater.
So I think under a certain set of possible circumstances that gold was illegally outlawed you would probably have you.
“You are seeing the question that arises in India today. India today is moving to make its illegal occupation illegal. The Indian government is currently working on a cryptocurrency bill and there are reports that it may ban cryptocurrencies such as Bitcoin. However, no official announcement has been made and the crypto industry is hopeful that there will be no clear ban on cryptocurrency.
Dalio was specifically asked if he thought it was possible for the government to ban Bitcoin. He replied: “I understand government oversight and other people like that, yes, they can understand, they can track it, they can know who is dealing with it. I don’t know – like, I’m not an expert on it. “
Billionaire hedge fund manager has been learning about bitcoin for the past few months. He admitted in November that he might be wrong about Bitcoin, but governments were concerned about making cryptocurrency illegal. He later said that Bitcoin was “a hell of a discovery” that could “serve as a storehouse of custom and other assets in gold.”
Responding to Dalio’s misinformed view, Bitcoins went on social media to argue about the government’s ability to ban Bitcoin. Cameron Winklevos, co-founder of Gemini, wrote: “Bitcoin may have the same properties as gold, but excluding decentralized software is a very different problem. You just have to be more discriminating with the help you render toward other people. “
Some accuse the Bridgewater executive of trying to manipulate the market to buy cheap coins, noting that a large number of corporations are investing in BTC. Recently, Goldm Sachs said it sees huge institutional demand for cryptocurrency and expects Visa Bitcoin to become “extremely mainstream”. Deutsche Bank says Bitcoin is now the third largest currency after the dollar and the euro. Moreover, Morgan Stanley is preparing to provide bitcoin exposure to wealthy customers and other banks are also expected to follow suit.
What do you think of Ray Dalio’s Bitcoin Warning? Let us know in the comments section below.
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