World’s Largest Hedge Fund Founder Says Government Outlawing Bitcoin is a Good Thing
Ray Dalio, the founder of the world’s largest hedge fund Bridgewater Associates believe Bitcoin would have a similar impact as gold in the 1930s. Dalio suggested that just like the 30s when people started investing in gold as the return on bonds and cash diminished due to the war.
Bitcoin today is attracting similar investment enthusiasm from all corners of the financial world, and Dalio believes the government’s conservative approach would only help its cause. Dalio explained,
B]ack in the ’30s in the war years … because cash and bonds were such bad investments relative to other things, there was the movement to those other things, and then the government outlawed them. They outlawed gold.That’s why also outlawing bitcoin is a good probability.
Dalio suggested that every country wants to have complete control over supply/demand for currency in the market, thus a decentralized asset with limited supply surely poses a risk for the sovereignty that this government holds.
Bitcoin is the new Alternate Store of Wealth: Dalio
Bitcoin this bull season has turned some of its most skeptical critics into a believer as its price recorded a new ATH of $61,683 and is expected to top $100,000 by the end of the year.
The raging pandemic that started last year changed the world in many ways, and in these troubled times, investors and traders were looking for a store of value as USD value, gold along government bond returns diminished. Bitcoin emerged as the growing and alternative store of value as Fortune 500 companies such as MicroStrategy and Tesla started using it as a Treasury Reserve Asset while billion-dollar wealth funds started investing in it for better returns.
Dalio believes Bitcoin over the years has proven its worth as a new store of value over gold with better functionalities.Source