Could the United States ban bitcoin in the future? Billionaire Ray Dalio, founder of the world’s largest hobby fund Bridgewater Associates, thinks so, adding that digital money could be the same fate as gold in the United States in the 1930s. Such a ban could have an effect. devastating on large holders and companies that are currently investing heavily in cryptocurrency. According to the businessman, the ongoing debates in India over a total ban on bitcoin are a sign of growing concern.
Ray Dalio recently expressed concern that the US government would ban bitcoin altogether if it is too successful. For now, it is out of government and central bank control. It is currently the most popular digital currency in terms of number of users and market value, and many view it as a safe alternative reserve of wealth. The number of bitcoin followers and miners is increasing every month and since last year large companies, including banks, have started adopting it.
Dalio said the silver story suggests that policymakers want to tackle alternative currencies that might challenge the dollar’s dominance. According to his analysis, bitcoin could suffer the same fate as gold almost a hundred years ago. In the 1930s, during the war, because cash and bonds were such a bad investment compared to other things, there was a movement towards these other things and then the government banned them. They have outlawed gold, Dalio told Yahoo Finance on Wednesday.
I think it would be very likely that, under certain circumstances, the currency [bitcoin] be outlawed like gold was, he said, in reference to the government’s decision to ban people from owning privately-held gold in the 1930s. bitcoin had “proven itself” over the past decade and is now equated with “digital money”. Thus, he believes that the success of bitcoin could represent a danger for governments. They don’t want other currencies to work or compete because things can get out of hand, he said.
Additionally, Dalio said the current debates among policy makers in India over a total bitcoin ban could herald a growing trend. I suspect it would be very difficult to resist this type of action, he said. Indeed, efforts are underway in the country to ban the use of cryptocurrencies. I do not know. I am not an expert in the matter, said Dalio. But, there is a long way to go. My understanding, from people who are in government watch and so on, is that yes, they can follow it. They can know who is doing it.
However, if the rumor of a ban is circulating, US regulators have not indicated that they are seeking a total ban on bitcoin, the cost of which continues to climb, changing at the time of writing of this article to $ 57,632. However, many investors argue that bitcoin should not be viewed as a currency, but rather as a speculative asset. Some influential people, including Treasury Secretary Janet Yellen, have suggested that regulations be tightened, amid fears that cryptocurrencies could be used to finance drug trafficking and terrorism.
Dalio also said that bitcoin’s success stems from the fact that it has never been hacked. Overall, therefore, it operated on an operational basis. He built up a large audience. It is an alternative, in a sense, of storing wealth. On the other hand, other analysts believe that it would be quite difficult for the US government to effectively ban bitcoin. While there is concern or risk surrounding bitcoin regulation, it is highly unlikely that even a concerted effort between different countries and different central banks could actually shut down Bitcoin, they said.
This is not technologically possible. But there are ways to regulate bitcoin. For his part, although he did not mention a ban, US Federal Reserve chairman Jerome Powell has repeatedly warned against cryptocurrencies like bitcoin. They are very volatile and therefore are not really useful stores of value, and they are not backed by anything, Powell said in a virtual roundtable on digital banking last Monday. It is more of a speculative asset that is essentially a substitute for gold rather than the dollar.
And you ?
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