Billionaire Ray Dalio, the founding father of the world’s largest hedge fund, Bridgewater Associates, has reiterated his warning that governments may outlaw bitcoin. “In history, they’ve outlawed gold and they’ve outlawed silver and so on, and they could outlaw bitcoin,” he careworn.
Ray Dalio Continues to Warn About Governments Outlawing Cryptocurrency
Bridgewater Associates founder Ray Dalio talked about bitcoin as he reiterated his warning that governments may outlaw the cryptocurrency on the Investor’s Podcast Network, revealed Saturday. Dalio at present serves as Bridgewater Associates’ chairman and co-chief funding officer. His agency’s purchasers embrace endowments, governments, foundations, pensions, and sovereign wealth funds.
Dalio warned that “there are regulatory issues” surrounding bitcoin. “When you have an alternative currency, that’s a threat to every government,” he elaborated. “Every government wants a monopoly in their own currency and particularly if you get a better currency because it doesn’t get devalued.” Dalio added:
In historical past, they’ve outlawed gold they usually’ve outlawed silver and so forth, they usually may outlaw bitcoin.
Nonetheless, Dalio admitted that he has a small quantity of bitcoin in his portfolio for diversification. “I’m Mr. diversification,” he mentioned. The Bridgewater Associates boss additionally lately revealed that he additionally owns some ether (ETH).
Commenting on the advice by one other well-known fund supervisor, Bill Miller, who mentioned that traders ought to maintain about 1% to 2% of their portfolio in bitcoin, Dalio mentioned, “I think that’s right.”
Despite the fear that governments could ban bitcoin, Dalio opined:
It’s very spectacular that this idea was programmed one thing like 10, 11 years in the past and has stood the take a look at of time.
The billionaire beforehand mentioned he doesn’t consider that bitcoin will substitute gold as some folks have instructed. He additionally doesn’t consider that the price of BTC may attain a really excessive quantity reminiscent of $1 million.
In distinction, Microstrategy CEO Michael Saylor has repeatedly mentioned that bitcoin will substitute gold. The pro-bitcoin government additionally expects the price of BTC to succeed in $6 million. In addition, fund managers are more and more opting to put money into bitcoin over gold, seeing the cryptocurrency as a greater retailer of worth.
The Bridgewater Associates founder has warned about governments banning bitcoin for fairly a while. In September final 12 months, he mentioned that regulators will kill bitcoin if it turns into “really successful.” In addition, he mentioned in May final 12 months that the success of cryptocurrencies may convey powerful laws. For instance, he famous regulators may impose “shocking” taxes on digital forex.
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