Ray Dalio Warns Bitcoin Regulators Could Kill Coin
Coinspeaker
Ray Dalio Warns Bitcoin Regulators Could Kill Coin
Billionaire investor Ray Dalio, the founder of Bridgewater Associates, has warned that there is a chance regulators will take control of Bitcoin if the cryptocurrency gains mainstream adoption. Dalio made the revelation at the SALT conference in New York.
Speaking about the prospects of Bitcoin, he said:
“I think at the end of the day if it’s really successful, they will kill it and they will try to kill it. And I think they will kill it because they have ways of killing it.”
Bitcoin Regulators: Countries Embrace Different Approaches
Bitcoin and digital assets generally have come under increased scrutiny of regulators. This is even as regulators seek better protection of investors dabbling into the speculative market.
Chairman of the Securities and Exchange Commission Gary Gensler said on Tuesday that the SEC “is working overtime to create a set of rules to protect retail investors through better regulation of the thousands of new digital assets and coins.”
The hedge fund billionaire believes the government doesn’t want cryptocurrency to enjoy mainstream success. Interestingly, there is a disparity in the response of the governments of different countries.
Earlier, El Salvador became the first country globally to adopt bitcoin as legal tender. Some other countries like Panama and Brazil are expected to follow through.
On the other hand, regulators in China have been cracking down on Bitcoin miners and markets. India is also expected to propose legislation outlawing cryptocurrencies and backed by a penalty for miners and traders. The United States is also talking about how to regulate and control digital assets.
On Past Trends and Future Prospects of Bitcoin
Despite the market volatility in 2021, Bitcoin has surpassed its past year record achieving a peak of $60,000 earlier in the year. At the time of writing, the price of Bitcoin was at around $48,000. This amounts to an over 60% increase. Perhaps this is why it continues to attract investors despite regulatory clampdown.
The 72-year-old investor believes that while Bitcoin has no intrinsic value, it is a better alternative to cash. Dalio, who is worth $15.6 billion according to Bloomberg’s Billionaires Index noted that his investment portfolio contains some Bitcoin. He claimed it forms only a fraction of his investment in gold, which is a subset of his entire investment.
When quizzed about Ark Investment Management’s Cathie Wood who forecasted that Bitcoin will increase by ten-fold in five years, Dalio noted that it didn’t make sense to him.