The ‘good chance’ government is pushing Bitcoin out

Billionaire investor Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, thinks Bitcoin could have had the same fate as the US in the 1930s.

“[B]”AK in the 30’s during the war years … because there were such bad investments in cash and bonds compared to other things, it was agitated in other matters, and then the government outlawed them,” Dalio told Yahoo Finance on Wednesday. “They outlawed gold.

“That’s why it’s a good idea to keep Bitcoin illegal,” he said.

Deloitte said Bitcoin, the largest cryptocurrency in terms of market value, has “proven itself” because its blockchain has not been hacked and the compliance behind it is huge. “It’s an alternative store-hold of wealth. It’s like digital cash. And it’s a source.”

“So I think it would probably be possible that you would have gold under a certain set of circumstances that made it illegal.”

“Every country values ​​its monopoly on controlling supply and demand. They do not want other money to be managed or competed, as things can get out of control,” Dalio explained.

Dalio, for example, cited his efforts to ban India and cryptocurrencies.

Whether it can be effectively banned in the US is another story.

“I don’t know. I’m not an expert on it,” Dalio said. “But, there’s a whole way. My understanding is, people under government supervision and so on, yes, they can track it down. They can figure out who’s dealing with it.”

However, James Ledbetter, a contributor to the Fintech newsletter FIN and CNBC, previously told CNBC Mack that an effective ban on Bitcoin would be very difficult for the government.

However, despite Bitcoin’s “concern or risk surrounding regulation,” “I don’t think joint efforts between different countries and even different central banks can really stop Bitcoin,” Ledbett said. “I don’t think it’s technically possible. But there are ways Bitcoin can be controlled.”

While he did not mention the ban, Federal Reserve Chairman Jerome Powell has repeatedly warned against cryptocurrencies such as Bitcoin.

“They’re very volatile and so they’re not really useful stores of value and they don’t support anything,” Powell said during a virtual panel discussion on digital banking on Monday. “It is a more speculative asset that is essentially an essential alternative to gold rather than tiller.”

Dalio had earlier addressed the government banning Bitcoin.

In a January post titled “What Do I Think Bitcoin” on the Bridgewater Associates website, Dalio wrote that although he is not a “bitcoin / cryptocurrency expert … I doubt that the biggest risk to Bitcoin is succeeding, because if it succeeds, So the government will try to kill it and it has a lot of power to succeed. “

Dalio also wrote that the “better alternative” to Bitcoin would probably come along and displace it, “because that’s how the evolution of everything works,” he said. “I see that as a risk.”

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