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- Governments have banned silver and gold in the past, and might ban Bitcoin if it succeeds too much, says the chairman of Bridgewater Associates.
- A suggestion from a famous fund manager about having at least one or two percent Bitcoin in the portfolio has been agreed on by Ray Dalio, the founder of Bridgewater Associates.
- Dalio expresses how impressed he is about the fact that the concept was programmed years ago and has managed to make it till today. He believes that the success of Bitcoin might bring strict regulations.
On Investor’s Podcast Network released Saturday, the billionaire founder of the Bridgewater Associates, Ray Dalio, has again warned everyone that the governments worldwide might ban cryptocurrency completely. Ray Dalio is the current co-chief investment officer and the chairman of Bridgewater Associates, and the clients of his organization include foundations, endowments, pensions, governments, and sovereign wealth funds.
He explained that currently, Bitcoin is surrounded by regulatory issues. He said that “when you have an alternative currency, that’s a threat to every government. Every government wants a monopoly in their own currency and particularly if you get a better currency because it doesn’t get devalued.” He further explained that governments have even outlawed gold, silver, and a lot more in the past to outlaw Bitcoin as well.
Dalio’s Diversification
Although Dalio accepted that his portfolio contains a small amount of Bitcoin, it is just because of diversification. Dalio also recently revealed that he owns some amount of Ether too. He expressed himself as Mr. diversification. Bill Miller, a famous fund manager, stated that all investors should at least hold about 1-2% of Bitcoin in their portfolio, to which Dalio said that he thinks that’s correct.
“It’s very impressive that this concept was programmed something like 10, 11 years ago and has stood the test of time”, said Dalio, irrespective of the tension that governments might ban Bitcoin. In recent times, Dalio also said that he does not think that Bitcoin might replace gold, the opposite of which is believed by many. He also does not believe that the prices of Bitcoin might go very high, for instance, reaching a million dollars.
The Counter Belief
On the other hand, the CEO of Microstrategy, Michael Saylor, has constantly repeated that Bitcoin will surely replace gold and believes that the prices of Bitcoin might even reach $6 million. Looking at cryptocurrency as a better store of value, fund managers are now actively choosing to invest in Bitcoin instead of gold.
Previous Warnings
It isn’t the first time that Dalio has warned about governments banning Bitcoin, he has been doing this for a while now. Earlier in September 2021, he said that if Bitcoin becomes a lot more successful, regulators would soon kill it. Also, in May 2021, he explained that cryptocurrencies becoming successful might result in the introduction of strict regulations. One of the instances he shared said that the regulators of the crypto industry might force eye-opening taxes on digital currencies.
Dalio has repeated his point many times and might continue to do so. The lack of regulatory clarity forces almost everyone to struggle when it comes to cryptocurrencies. However, the adoption and ease of access have somewhat reduced the struggle, but the fact that nothing could be predicted still crawls around.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
