Billionaire Ray Dalio: Authorities Will Strangle Bitcoin Before It Reaches Its Potential
Billionaire and Bridgewater Associates founder Ray Dalio says authorities will ban Bitcoin if it is too successful.
In a conversation with Yahoo! Finance, Dalio said he prefers gold to bitcoin and doubts the prospects of the former: “If bitcoin becomes substantial, the authorities will not allow it. They will make it illegal and use all the tools they have to enforce it. They will say, “Okay, you can’t do bitcoin transactions, you can’t have bitcoins.” Then you will think, “Is this a crime? I must be a criminal to translate it. “.
Dalio noted that in the past, the authorities had already banned gold, the only flaw of which for them was the ability to use it as a store of value..
“Will I Prefer Bitcoin over Gold? No. Gold will be the instrument that central banks and governments will choose as an alternative to regular money, ”Dalio added..
He also sees other obstacles in the way of the first cryptocurrency: “Today I cannot take Bitcoin and buy something for it without any problems. It is too volatile for a store of value. For the same reason, it cannot be used as a means of payment “.
Dalio expects that as digital currencies grow in popularity, cryptoassets will be supplanted by tokenized versions of fiat: “There are currencies like bitcoin, alternative currencies in terms of supply and demand, and store of value. And there are digital currencies, digital versions of the dollar, euro, Chinese yuan. I think we’ll see more of the latter. “.
At the World Economic Forum in Davos in January, Dalio expressed a similar opinion: “Money has two purposes: a means of payment and a store of value. Bitcoin is not efficient in any of the categories. He’s too volatile. Because of this volatility, it cannot be taken seriously. “.