- Ray Dalio, billionaire investor and founder of the $150 billion hedge fund Bridgewater Associates, claimed that there is a “good probability” for bitcoin being outlawed in the US.
- He believes as soon as bitcoin starts competing with fiat money, governments will shut it down.
- Dalio, contrary to his gloomy outlook, appreciates bitcoin stating that “it hasn’t been hacked” and it is “an alternative.”
Despite the recent encouraging news, “you can now buy a Tesla with Bitcoin” announcement from Elon Musk, which was expected to trigger a surge to new all-time highs, bitcoin is down by 4.4% trading at around $52,000, at the time of writing.
It seems like the doubt, fear, and uncertainty has returned and even magnified with billionaire hedge fund manager Ray Dalio’s statements certainly adding fuel to the fire. In an interview on March 24, Dalio explained how the US government can ban bitcoin just as it did with gold in 1933. He said:
Every country treasures its monopoly on controlling supply and demand. They don’t want other monies to be operating or competing, because things can get out of control. So I think that it would be very likely that you will have it under a certain set of circumstances outlawed the way gold was outlawed.
He also mentioned how India is proposing to ban Bitcoin and cryptocurrency trading in general. Emphasizing that he is not a cryptocurrency expert in the field, but he thinks that governments have the power to ban bitcoin and prevent its trading.
Now, can they do it? Yeah. Now we get into the particulars. My understanding from people who are sort of in government surveillance is yes, they can understand they can track it. They can know who’s dealing with it.
Ray Dalio has blasted bitcoin several times in recent months. He labeled bitcoin as a poor medium of exchange with the high volatility that makes it unsuitable for “a store-hold of wealth.”
However, this time, he ended the interview with some appreciation about bitcoin and its achievements:
Bitcoin has proven itself over the last 10 years, it hasn’t been hacked. It’s by and large, therefore, worked on an operational basis. It has built a significant following. It is an alternative, in a sense, storehold of wealth. It’s like a digital cash. And those are the pluses.
Soon after these comments, bitcoin’s correction deepened and its price fell to as low as $51,500. There are obviously no links between Dalio’s comments and this drop, but there is no denying that when bitcoin slips, Dialio is often the first to comment.