Billionaire and hedge fund founder Bridgewater Associates Ray Dalio believes that if bitcoin is too successful, regulators could “end it once and for all.”
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interview on CNBC’s Squawk Box, Dalio talked about inflation and its implications for the global economy, encouraging investors to diversify their portfolios to reduce risks. Dalio said that cash brings negative returns, and in the current environment, Bitcoin can be considered a good store of value.
Any alternatives to cash are worth considering, Dalio said. Previously, he was skeptical about Bitcoin, calling it too volatile an asset. The founder of Bridgewater Associates believes that if Bitcoin becomes too popular, regulators may try to stop its development.
“It’s an amazing achievement to get bitcoin out of the real world where programming originated. Bitcoin is now passing the test of time. But if he does succeed, regulators will try to kill him and find ways to do so, ”Dalio said.
Speaking about the legalization of bitcoin in El Salvador, the billionaire is sure that this Latin American country will not be able to create a “counterbalance” to the actions of the Indian and Chinese governments in relation to bitcoin. China has banned the mining of cryptocurrencies in the country, forcing miners to move equipment to other jurisdictions.
This week, two more Chinese provinces, Hebei and Gansu, have introduced prohibitive measures for miners. In addition, at the beginning of the month, Indian authorities began considering a bill to regulate cryptoassets, but it is not yet clear what they will be considered: stocks, commodities or currencies.
“There is El Salvador, who took the risk of introducing bitcoin. There are India and China that are trying to get rid of it. And there is the United States, which is discussing how cryptocurrencies can be regulated, which means that you can still take control over them, ”Dalio suggested.
In another recent appearance on CNBC, Dalio said that he favors gold as the most reliable asset to protect against inflation.
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