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Ray Dalio said that if the cryptocurrency gets too successful, regulators will shut down Bitcoin, dismissing Ark Invest’s Cathie Wood predictions that the price would increase tenfold in five years.
At the Salt Conference on Wednesday, the founder of Bridgewater Associates said that Bitcoin was a viable investment alternative as long as it was accepted for payments, but added, “At the end of the day, I think if it’s really successful. . .[regulators]will try to kill it. “
He also had an argument with Wood, who announced Monday at the Salt conference – an annual gathering of hedge fund managers in New York City – that it expects Bitcoin to be worth $ 500,000 in five years, a prediction, of the Dalio said that she “does not do”. Sense”.
Wood’s investment firm has unveiled plans for an exchange-traded bitcoin fund, though it has yet to get regulatory approval.
Dalio’s comments come after Gary Gensler, chairman of the US Securities and Exchange Commission, urged Congress to grant more regulatory powers to deal with the “wild west” of cryptocurrencies.
The SEC last week warned Coinbase, the first major U.S. cryptocurrency exchange to go public, that it would sue the company if it launched a new digital lending product called Lend.
The news sparked a debate about whether such products, which enable users to earn interest on certain digital assets, should be considered securities and therefore fall within the jurisdiction of the regulator.
Dalio said he bought cryptocurrencies himself, but his holdings are still small in relation to his investments in gold. He added that “Governments don’t want alternative currencies,” but investors should diversify their holdings.
Bitcoin’s price has soared nearly 50 percent this year, with high profile investors like Paul Tudor Jones and Stanley Druckermiller throwing their weight behind the cryptocurrency.
Dalio, who is co-chief investment officer and co-chair of the world’s largest hedge fund with more than $ 100 billion in assets, also announced that he is preparing to leave the industry. “I’ll be through in a year or two,” he said.
The investor predicted that if the effects of fiscal and monetary stimulus wore off, markets would look different over the next few years. “You had a good stimulant and everyone is high and it’s great. But when that subsides, it will be a slightly different picture, ”he said.
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