The billionaire founder of Bridgewater Associates, Ray Dalio is still concerned that governments could 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 raised 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.
Dalio referred 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 against 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.”
“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.”
The Bridgewater Associates founder explained that it is important to continually re-evaluate 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.”
“Make the diversification global, not just in the United States.”
While Dalio sees bitcoin as a digital version of gold and a hedge against inflation, he still prefers gold, citing the metal’s longer history of being a “storehold of wealth.”
“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 might get less realistic over time, as cryptocurrency adoption increases globally. Just 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.
Source: Ray Dalio Concerned That US Government Could Outlaw Crypto – Fintechs.fi