Billionaire hedge fund titan Ray Dalio is warning buyers that governments would possibly make use of draconian measures in opposition to Bitcoin (BTC) if the main cryptocurrency turns into “actually profitable.”
Dalio is the founding father of one of many world’s largest funding administration companies, Bridgewater Associates.
In an interview with CNBC, he claims that if Bitcoin actually takes off, the federal government has each the motivation and talent to kill the blockchain-based asset.
“The governments don’t need to have it [be] profitable.
I believe regulation… on the finish of the day, if [Bitcoin is] actually profitable… they’ll attempt to kill it. And I believe they are going to kill it as a result of they’ve methods of killing it.”
He compares Bitcoin to different historic property with out intrinsic worth whose valuations have fluctuated drastically, going shortly from large bubbles to crashes. Dalio warns that Bitcoin could show to fall into the identical class.
While Bitcoin is rising in dominance, Dalio stays diversified and thinks it’s value contemplating all options to money, reminiscent of gold.
He notes that his present allocation into Bitcoin is a “small proportion” of what he holds in gold.
Dalio stresses the significance of diversification and securing wealth by means of property with intrinsic worth to hedge in opposition to inflationary financial coverage.
“With a fiat financial system, the place is your laborious cash? That’s the query, and nonetheless you go after it, I believe that’s the query [that needs] to be answered.”
His remarks come as Congress grapples with crypto regulation so as to enhance authorities oversight inside the digital asset markets.
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