Why billionaire Ray Dalio thinks Bitcoin could be banned

Aside from legendary investors like Warren Buffett, few other fund managers have seen as much success as Ray Dalio. Dalio, the founder of Bridgewater Associates, one of the largest hedge funds in the world, has become one of the most respected and heard voices in the financial world.

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While many billionaires like Elon Musk are optimistic about Bitcoin, Dalio thinks the opposite. The hedge fund’s founder said this morning that he believes Bitcoin could be banned by the U.S. government following India’s example. Should crypto investors worry if bitcoin prices drop in response to the news?

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Ray Dalio and Bitcoin

This isn’t the first time Dalio has predicted a US Bitcoin ban. In November 2020, the billionaire declared that governments would use every instrument at their disposal to enforce a Bitcoin ban, just as the government banned gold ownership back in 1934.

Dalio doubled its Bitcoin forecast on March 25th. In an interview with Yahoo Finance, he said that every country wants to maintain control over the supply and demand of currencies. With governments and central banks not wanting other currencies to compete with their own legal tender, he believes Bitcoin’s surge in popularity is a threat to fiat currencies.

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Even so, Dalio still gave Bitcoin the credit it deserved. In a previous blog post on Bridgewater’s website, he said that Bitcoin was “one hell of an invention” and that its popularity was justified. It’s just that he doesn’t believe it will stay in its current form forever.

Bitcoin Regulations

For most western countries, the main problem with cryptocurrencies is the lack of transparency. Some tokens, like Monero, pride themselves on their privacy and are not traceable. Anti-crypto advocates have argued that these types of coins allow money laundering. On the other hand, pro-crypto advocates say that government control over our financial system has gotten out of hand and that cryptocurrencies are a way to regain some of our freedom.

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Despite the initial restrictions, most countries have now reached a middle ground, mainly through AML (Anti-Money-Laundering) and KYC (Know-Your-Customer) regulations. This means that anyone who wants to sign up for a crypto exchange must enter their personal details and a copy of their driver’s license or passport.

Busines Crypto Laptop

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While it is impossible to track transactions from one digital wallet to another, these KYC regulations allow these governments to track whenever you deposit or withdraw cash from your crypto exchange to your bank account.

Countries that have banned Bitcoin

Only a handful of countries have banned Bitcoin. India is the youngest and has the toughest stance. India outweighs the buying and selling of crypto. Even having Bitcoin in your possession could result in fines or jail terms. This is tougher than in China, where owning crypto was not made a criminal offense. Other countries that have banned cryptocurrencies include Nigeria, Saudi Arabia, Bolivia, Algeria, and Nepal.

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Does Ray Dalio have the right to ban Bitcoin?

His comments have already attracted a lot of attention and debate from people on both sides of the subject. Anthony Scaramucci, former White House communications director, tweeted that a Bitcoin ban was impossible.

There is currently no indication that the US intends to ban cryptocurrencies. From a political point of view, this would hurt the popularity of the current administration, especially considering how divided the House and Senate are right now.

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