August 6, 2021

Bitcoin (BTC) soon illegal in the US according to Ray Dalio

A thorn in the soles of the feet, this is what bitcoin represents today for many governments and central banks. Failing to make it disappear, they are constantly working to limit its use through strict regulations. Some like India have decided to ban them because they cannot control a market based on decentralization. Co-founder and chief investment officer of Bridgewater Associates Manager, billionaire Ray Dalio believes the U.S. government is likely to come to this end.

Ray Dalio

A decision similar to that taken for gold in the 1930s

As has often been the case in recent months, Mr Dalio’s opinion stems from a comparison between bitcoin and gold. Although there is no question of the safe haven security, the hedge fund manager believes that the cryptocurrency is approaching a turning point already taken by gold. « Like in the 1930s, during the war… cash and bonds were such a bad investment compared to other things, there was a movement towards these other things again, and then the government banned them… They have banned gold ».

Besides this aspect, Mr.Dalio also mentioned the need for governments to maintain a monopoly on supply and demand. The latter would not wish that other currencies operate or compete because things could get out of hand. Bitcoin belonging to this asset class like gold before it, he expects cryptocurrency to suffer the same fate. For those who doubt the feasibility of such a thing, Mr.Dalio cited the example of the Indian case that the US government could rely on to make illegal or ban the possession of bitcoin.

A completely surreal scenario according to the actors of the cryptosphere

When asked how such a scenario could happen, Mr Dalio preferred to be careful, recalling that he was not a specialist in cryptocurrencies. “My understanding of people who are sort of in government oversight and so on is, yes, they can understand, they can follow it, they can know who is dealing with it. I don’t know, I’m not an expert in this matter » he just answered.

These experts did not hesitate to respond to the controversy emphasizing their point of view on the possible ban of bitcoin. There is no doubt that this scenario would be difficult to materialize according to them like what was said Cameron Winklevoss. “Bitcoin may have properties similar to gold, but making decentralized software illegal is a much different problem. It requires that you essentially outlaw the Internet ” he asserted.

While Mr. Dalio is entitled to express his fears about bitcoin and cryptocurrencies in general, some observers could not help seeing it as an attempt to manipulate the markets. The leader of Bridgewater is therefore suspected of wanting to lower the price of the asset in order to buy it more easily now that institutional demand in the market is strong.

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DISCLAIMER

The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.