- Ray Dalio, the founder of the world’s largest hedge fund, thinks regulators will try to “kill” Bitcoin if it gains mainstream success.
- He, however, thinks the digital asset is a good alternative to cash and other financial assets.
Billionaire investor, Ray Dalio, says regulators will try to destroy Bitcoin (BTC) if it becomes successful. Speaking on Wednesday at CNBC’s Squawk Box, the founder of the world’s largest hedge fund, Bridgewater Associates, said:
I think at the end of the day if it’s 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.
Over time, the highly speculative crypto markets have continued to garner popularity among the masses. The US Securities and Exchange Commission (SEC) has intensified its oversight in the industry, seeking investor protection through regulation. The commission’s Chairman Gary Gensler said Tuesday that a new set of rules would soon be provided on the same.
Bitcoin- self anointing asset
Yet, despite the regulatory encroachment and wild price swings, Bitcoin has continued to shine. The digital asset has more than quadrupled in the last 12 months and hit a record high of $60,000. At writing time, BTC was trading at $48,203, up 1.7 percent in the day according to our data. BTC has also managed to stay above Ethereum (ETH), the second-largest cryptocurrency by market cap. Currently, the BTC market cap is more than twice that of ETH.
In some regions, BTC has been embraced while in some, it remains embattled.
“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 said.
Earlier this month, El Salvador became the first nation worldwide to adopt Bitcoin as legal tender. Meanwhile, China has been cracking down on crypto markets, and mining Bitcoin in the country is now illegal. India intends to propose a law to regulate cryptocurrencies.
On the Flipside
Bitcoin lacks intrinsic value, Dalio said. This means the digital currency has no fundamental and objective 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.
Nevertheless, the hedge fund manager thinks Bitcoin is a good alternative to cash. His financial portfolio has some Bitcoin holdings, though in less proportion to the gold.
“I think it’s worth considering all the alternatives to cash and all the alternatives to the other financial assets. Bitcoin is a possibility. I have a certain amount of money in bitcoin,” Dalio said. He further added;
It’s an amazing accomplishment to have brought it from where that programming occurred to where it is through the test of time.