The Bridgewater Associates co-founder and chief investment officer, Ray Dalio, says that there is a good probability that the government will outlaw bitcoin in the same way gold was outlawed in the U.S. in the 1930s.
Ray Dalio Thinks Governments Can Outlaw Bitcoin
Ray Dalio shared his view on whether the government could outlaw bitcoin in an interview with Yahoo Finance Wednesday. He is the co-founder and chief investment officer of Bridgewater Associates, the world’s largest hedge fund firm. His clients include endowments, governments, foundations, pensions, and sovereign wealth funds.
Dalio believes that bitcoin may suffer a similar fate as gold did in the U.S. during the 1930s. “Like back in the ’30s in the war years … cash and bonds were such bad investments relative to other things, there was the movement to those other things still, and then the government outlawed them … They outlawed gold,” he recalled, elaborating:
That’s why also outlawing bitcoin is a good probability.
Besides outlawing gold, Dalio added that “they also established foreign exchange controls, because they don’t want the money to go elsewhere.”
Emphasizing that “every country treasures its monopoly on controlling the supply and demand. They don’t want other monies to be operating or competing, because things can get out of control,” the Bridgewater founder opined:
So I think that it would be very likely that you will have it, under a certain set of circumstances, outlawed the way gold was outlawed.
“You’re watching that question arise in India today. India today is making a move to outlaw it– outlaw possession of it,” he pointed out. The Indian government is currently working on a cryptocurrency bill and there have been reports that it may ban cryptocurrencies like bitcoin. However, no official announcement has been made and the crypto industry is hopeful that there will be not an outright ban on cryptocurrencies.