Bridgewater founder Ray Dalio: When Bitcoin succeeds, governments will ban it

Billionaire Bridgewater Associates founder Ray Dalio believes governments will ban Bitcoin before it reaches its full potential.

In an interview with Yahoo Finance reporter Julia LaRoche, Dalio said that if Bitcoin succeeds, governments will outlaw the cryptocurrency. The billionaire investor also explained why he prefers gold to Bitcoin and doubts whether governments will allow Bitcoin to become a useful currency.

He mentioned, “If Bitcoin becomes important, the government is not going to allow it to exist. I mean, they’re going to make it illegal, and they’re going to do everything they can to enforce it. They’re going to say, ‘Well, you can’t trade Bitcoin. You can’t own Bitcoin.’ They made gold illegal. What’s wrong with gold? Gold is a store of wealth.”

Therefore, he said that he would not prefer Bitcoin to gold because gold is the tool of choice for central banks and governments and an alternative to regular cash.

In addition to governments, Dalio also mentioned other problems with Bitcoin. He said, "I can't easily go shopping with Bitcoin today. It's so unstable and its price fluctuates too much, so it's not an effective store of value."

Dalio predicts that digital versions of fiat currencies will squeeze the living space of crypto assets such as Bitcoin. He mentioned, "Cryptocurrencies such as Bitcoin may become an alternative currency or another way to store wealth in terms of its supply and demand. But there are other types of digital currencies, such as digital dollars, euros or renminbi. I think we will see more of the latter."

Dalio's comments are clearly different from other billionaires such as Stanley Druckenmiller and Paul Tudor Jones, who see Bitcoin as a store of value like gold.

According to BitPush's previous report, Druckenmiller believes that Bitcoin may have greater upside potential than gold, while Jones said that investing in this cryptocurrency is like investing in technology stocks such as Apple and Google in their early days.

Image source: pixabay

AuthorLiang Che

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