Bitcoin is in danger of being outlawed: this is the thought expressed (again) by Ray Dalio.
Ray Dalio’s fears for Bitcoin
Ray Dalio is the founder of the investment fund Bridgewater Associates. In a recent podcast reported by NewsBitcoin.com, he reiterated his opinion that Bitcoin may soon be outlawed, as has happened in the past to other assets considered to be a hedge against inflation, such as gold and silver.
Governments, in his view, want to have a monopoly on money, so they fear BTC now as they have feared gold in the past.
Speaking of gold, Dalio is among those who do not equate gold with Bitcoin, and he seems more confident in gold than in BTC, despite its performance.
He himself has investments in Bitcoin and Ethereum, a small percentage of his portfolio.
Ray Dalio’s warnings
Ray Dalio has several times expressed scepticism about Bitcoin. Not because he doesn’t believe in BTC but because he believes it is something that carries other consequences. For example, volatility does not make it a good medium of exchange. Plus, even if it became such a successful currency that could “threaten” legal currencies, governments could ban it.
It’s a concept that the billionaire reiterated a few months later to Yahoo Finance, pointing out that governments want a monopoly on currencies and have no desire to compete with other currencies; if that happens, the only alternative is to outlaw the rival currency. According to him, it is history repeating itself, as he pointed out in a speech on LinkedIn in April 2021.
Billionaires investing in cryptocurrencies
Ray Dalio, while sceptical about Bitcoin, has nevertheless included it in his investment portfolio. After all, history repeats itself, with the high number of banknotes printed during the pandemic, it was easy to predict that inflation would hit the United States hard, and to protect themselves, the most experienced in the world of finance look for alternative solutions. That’s what Ray Dalio did, despite the fears. But he is in good company.
Elon Musk, the CEO of Tesla, considered to be the richest man in the world, also owns Bitcoin.
In May 2020, Paul Tudor Jones, manager of one of the world’s largest hedge funds, Tudor Investment Corporation, also entered the world of cryptocurrencies.
One could also mention the companies that wanted to include Bitcoin in their balance sheets, one of them being Microstrategy. The company led by Michael Saylor has purchased an impressive 124,391 BTC since August 2020. The last purchase was disclosed on 30 December 2021. At an average of $30,000 per Bitcoin, the company now boasts a total of $3.75 billion in BTC in its assets.
Michael Saylor’s philosophy remains the same: HODL.
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