Billionaire Hedge Fund Manager Ray Dalio Still Concerned Government Could Outlaw Cryptocurrency
The founder of the world’s largest hedge fund, Bridgewater Associates, is still concerned that governments could outlaw cryptocurrencies. Nonetheless, he sees bitcoin as digital gold and owns some for diversification. Ray Dalio Worried About Government Outlawing Cryptocurrencies
Bridgewater Associates founder Ray Dalio is still concerned that governments may outlaw cryptocurrency. Dalio now serves as the firm’s chairman and co-chief investment officer. Bridgewater Associates’ clients include endowments, governments, foundations, pensions, and sovereign wealth funds.
Dalio voiced his concern in an interview with CNBC last week, stating that there is “a reasonable chance” that cryptocurrencies, including bitcoin, could eventually be outlawed by the federal government.
He pointed to the time when President Franklin D. Roosevelt signed the Gold Reserve Act in 1934, transferring all of the country’s privately held gold titles and certificates to the U.S. Treasury as an example. The executive previously explained that any major economic downturn or inflationary event could prompt governments to take similar action on bitcoin and other cryptocurrencies.
The 72-year-old billionaire to CNBC last week: “I own a very small amount of bitcoin. I’m not a big owner.” He added: There are certain assets that you want to own to diversify the portfolio, and bitcoin is something like a digital gold.
“I just think of it as diversification. By and large, I don’t really know whether bitcoin is going to go up or down. I could argue both sides of that,” he admitted.
The Bridgewater Associates executive explained that it is important to continually reevaluate the investments and avoid buying assets that perform well for a short period of time. “Be careful about what you’re putting your money in,” he said, elaborating: “Make the diversification global, not just in the United States.”
While seeing bitcoin as a digital version of gold and a hedge against inflation, Dalio still prefers gold, citing the metal’s longer history of being a “storehold of wealth.” He said: “If you put a gun to my head, and you said, ‘I can only have one.’ I would choose gold.”
Dalio’s crypto ban concern is getting less and less realistic over time, however, as cryptocurrency adoption increases globally. Last week, the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, said that Satoshi Nakamoto’s “innovation is real.” A growing number of the world’s largest investment banks are also getting into crypto, including JPMorgan, Goldman Sachs, Citigroup, and Morgan Stanley. In addition, companies are hiring more people to work on crypto projects, including Amazon, Fidelity, and Paypal.
What do you think about Ray Dalio’s concern? Let us know in the comments section below. US Senator Warren Sees Benefits of Cryptocurrency but Warns "a Run on Crypto" May Need Federal Bailout REGULATION | 7 hours ago US Senator Warns Passing Unproven Crypto Law Will Stifle Innovation and "Make Americans Poorer" REGULATION | 15 hours ago Tags in this story bridgewater associates, government outlaw bitcoin, government outlaw cryptocurrency, Ray Dalio, Ray Dalio bitcoin, Ray Dalio crypto, Ray Dalio cryptocurrency
Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments