Ray Dalio, founder of the world’s biggest hedge fund, Bridgewater Associates, believed that if bitcoin continues to come to be thriving and obtain more mainstream acceptance, the regulators and governments would attempt to make it ineffective. “I think at the end of the day if it’s really successful, they will kill it and they will try to kill it. And I think they will kill it because they have ways of killing it,” Dalio told CNBC on Wednesday on regardless of whether regulation will ‘kill it’.
Dalio’s comments come in the background of nations like India, China, and the US itself stepping up focus on cryptocurrencies. For instance, the US Securities and Exchange Commission Chairman Gary Gensler stated on Tuesday, as reported by CNBC, that Wall Street’s top rated regulator is working overtime to develop a set of guidelines to oversee the volatile cryptocurrency markets whilst balancing the interests of American innovators. India is also coming up with a law to regulate cryptocurrencies. Finance Minister Nirmala Sitharaman had stated last month that the Cabinet approval is awaited on the cryptocurrency bill. China has also reportedly enhanced crackdown on crypto usage and mining in the nation.
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“You have El Salvador taking it on and you have India and China getting rid of it. And you have the United States talking about how to regulate it and it could still be controlled,” Dalio added. However, he noted that bitcoin does not have intrinsic worth. “There are so many things in a historical perspective that didn’t have intrinsic value and had perceived value. And then it went hot and it became cold. It could be either way. You just have to know what it is. It could be tulips in Holland.”
Dalio stated Bitcoin has a possibility to be an option to money “and all the alternatives to some of the financial assets.” Importantly, Dalio has investment in bitcoin — a smaller percentage of dollars he has in gold. Earlier in May this year as properly, Dalio had stated that bitcoin’s accomplishment is its largest danger. He had told Wall Street Journal that “Its own biggest risk is its success, because as a storehold of wealth no government wants to have an alternative currency.”
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