Billionaire hedge fund manager Ray Dalio is issuing a warning to all Bitcoin holders.
In an interview with Yahoo Finance, the ex-Bridgewater Associates investment officer reminds viewers that in the 1930s, the US government passed the Gold Reserve Act to prevent gold from competing with credit and the dollar as a storehold of wealth.
The same thing may happen to Bitcoin, claims Dalio, as the flagship cryptocurrency surges despite a global financial crisis, and investors look for alternatives to bonds and currencies.
Dalio notes that Bitcoin has proven itself as a solid alternative store-of-wealth asset. However, its success may put it in the government’s crosshairs.
“Bitcoin has proven itself over the last ten years. It proved 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 store hold of wealth…
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. 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.”
Dalio points out other countries are already considering outlawing Bitcoin. India, for instance, is planning to propose a new law that will criminalize the possession, mining, trading, and issuance of Bitcoin and other cryptocurrencies.
In terms of how practical it will be for the government to enforce such a ban, the veteran investor adds that, as far as he understands, the government does have the capabilities to regulate the use of the crypto asset.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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