Billionaire investor and founder of the $150 billion hedge fund Bridgewater Associates, Ray Dalio believes that there is a good probability of Bitcoin getting outlawed, similar to how the U.S. government banned gold ownership in the 1930s. Regulators at the time did not want gold to compete with fiat currency as a store of wealth, a similar move that could happen to Bitcoin.
In an interview with Yahoo Finance on March 24, legendary investor, Ray Dalio stated the probability of the U.S. government banning Bitcoin regarding just how the country banned gold banned ownership in the 1930s.
Dalio points out the Gold Reserve Act of 1934 where owning gold at that time was considered to be illegal. As government leaders at the time didn’t want gold to compete with fiat as a replacement. A similar move could happen with Bitcoin, according to him.
“They don’t want other monies to be operating or competing because things can get out of control. 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.”
Despite Dalio’s dispirited outlook on Bitcoin’s future, he did acknowledge that the cryptocurrency has continued proving itself over the last 10 years as digital cash:
“Bitcoin has proven itself over the last 10 years, it hasn’t been hacked. It’s by and large, therefore, worked on an operational basis. It has built a significant following. It is an alternative, in a sense, store hold of wealth. It’s like a digital cash. And those are the pluses.”.