The billionaire investor and head of the biggest hedge fund in the world Ray Dalio says Governments will outlaw bitcoin, warning about the way they will deal with the number one cryptocurrency. In today’s latest bitcoin news, we are reading more about it.
He also said that the cryptocurrency was too volatile but praised gold and central bank digital currencies. Ray Dalio believes that bitcoin is not a good alternative asset because governments will outlaw it. The biggest crypto by market cap is problematic because of its volatility and the inability to spent it on everyday goods, Dalio said in an interview over the weekend with Yahoo Finance. Dalio runs the biggest hedge fund in the world, Bridgewater Associates, and even said that he instead expects the world to turn to central bank digital currencies like the digitalized US dollar, renminbi or EUR:
“Theoretically, [Bitcoin] is good, but there are three basic things—a currency has to be an effective medium of exchange, a storehold of wealth, and the governments want to control it. I today can’t take my bitcoin yet and buy things easily with it.”
He also said that bitcoin is “so volatile” and that this will prevent it from being useful as a stronghold of wealth but then added that governments will outlaw BTC:
“And they’ll [governments] use whatever teeth they have to enforce that, they’ll say you can’t transact a Bitcoin, you can’t have it. Then you’d have to be like, is it a felony, am I gonna be a felon? They outlawed gold. I wouldn’t prefer Bitcoin to gold.”
This is not the first time that Dalio criticized Bitcoin and praised gold. The investor said that the cryptocurrency was too volatile but said that everyone should have some gold in their portfolio. However, he showed some interest in Facebook’s Libra. His comments came at a time when institutional investors started showing more interest in the cryptocurrency which is responsible for the explosion in Bitcoin’s price according to the analysts.
Dalio’s key to a successful portfolio is to “diversify, diversify, diversify.” However, diversity doesn’t extend to Bitcoin according to him.
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