In an interview with Yahoo Finance, Ray Dalio argued that governments would not allow Bitcoin to materialize and maintain its success. He says that Bitcoin is not a store of value and has problems as a transaction vehicle.
Billionaire investor and founder of the world’s largest hedge fund Bridgewater Associates, Ray Dalio, believes that governments will outlaw Bitcoin (BTC) if it becomes very successful. This was stated by Dalio himself in an interview on YouTube with Julia LaRoche from Yahoo Finance.
During the interview, in addition to Bitcoin, they discussed capitalism, the wealth gap, why the education system is failing these days, millennials, and more. Specifically, about Bitcoin, Dalio explained why he prefers gold and expressed doubts about whether governments will allow BTC to become a helpful currency to the public.
“If [Bitcoin] materializes, governments will not allow it. I mean, they will ban it and will go out of their way to enforce that. They will say, ‘Okay, you can’t make transactions [with] Bitcoin. You cannot have a Bitcoin”.
So if I were to say, “Do I prefer Bitcoin to gold? No, I would not prefer Bitcoin to gold. Gold will be the vehicle that central banks and countries will choose as an alternative to normal cash”.
Ray Dalio Says Governments Will Ban Bitcoin
According to Daily Hodl, Dalio cites other issues he notes with Bitcoin, in addition to potential problems with the government. Dalio said:
“I, nowadays, cannot take my Bitcoin yet and easily go shopping with it. Its volatility, which is based on speculation, is so great that it does not allow it to be an effective store of wealth. That is also one of the reasons why it is a problem to be a transaction vehicle because if a seller says: ‘They will pay me in Bitcoin ‘, and you don’t know what that means, it’s a problem”.
As the popularity of digital currency increases, Dalio predicted that digital versions of fiat currencies will crowd out crypto assets like Bitcoin.
“Not investing in China would be very risky “
In another vein, on Wednesday, Dalio supported China’s sudden decision to suspend the historic listing of the Ant Group, which amounts to USD 37,000 million. This is a report by the Market Inside media.
Dalio said there is a risk of being too lax on innovation, as Ant is a “totally new concept in terms of banking.” He also added that not investing in China is a real severe risk because the printing of a lot of money in the US is threatening the state of the dollar reserves.
Dalio, who has long advocated going all out in China, said that people accused him of being biased, naïve, and in some cases unpatriotic while his personal opinion is that he’s just being objective.
By: Jenson Nuñez.
