Ray Dalio: Authorities will shut down Bitcoin if it goes mainstream
Ray Dalio: Authorities will shut down Bitcoin if it goes mainstreamRay Dalio: Authorities will shut down Bitcoin if it goes mainstreamRay Dalio: Regulierungsbehörden werden Bitcoin abschalten, wenn es sich im Mainstream durchsetztRay Dalio: Regulierungsbehörden werden Bitcoin abschalten, wenn es sich im Mainstream durchsetzt

Ray Dalio, the founder of Bridgewater Associates – the world’s largest hedge fund – believes regulators will do away with Bitcoin if the currency proves successful.

Speaking at the SALT conference in New York on Monday, Dalio said Bitcoin is a thriving cryptocurrency and a good alternative for payments. However, he believes that regulators can also do away with the cryptocurrency.

I think if it is successful, they will abolish it at the end of the day

– Dalio said verbatim.

During the course of the SALT conference – an annual gathering for hedge fund managers in New York City – there were mixed messages regarding Bitcoin. For example, Cathie Wood, CEO of Ark Investment, predicted that the BTC price will rise to $500,000 in the next five years. However, Dalio dismissed the prediction as “hot air.”

Wood plans to launch a Bitcoin Exchange Trade Fund to hold and track Bitcoin’s future performance. However, her investment firm has yet to receive regulatory approval.

Governments don’t want alternative currencies

Dalio’s comments come after SEC Chairman Gary Gensler said U.S. regulators are working around the clock to develop a set of rules to protect crypto investors by better regulating new digital assets.

Gensler threatened to sue a major U.S. crypto platform Coinbase, which is listed on the exchange, over plans to launch Lend. This is a new lending product for digital assets. It is supposed to allow users to earn interest on various digital assets.

Coinbase disagrees that the SEC should regulate Lend or even consider it a form of security. And that the SEC doesn’t have such regulatory powers at all.

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Dalio owns a decent amount of cryptocurrencies. But he says the amount is small compared to sa gold investment is quite low. He added that crypto investors need to diversify their crypto holdings as “governments don’t want alternative currencies.”

Cryptocurrencies’ surge will soon subside

Although bitcoin prices took a nosedive last week, other high-profile investors like Stanley Druckenmiller and Paul Tudor didn’t mind buying the cryptocurrency.

Dalio predicts that the crypto markets will see a big change in the next few years. Thanks to the phasing out of fiscal and monetary stimulus packages.

Right now, he believes everyone is experiencing a cryptocurrency high. He said once the high subsides, everything will change somehow.

Dalio reportedly plans to leave the industry in a year or two. His hedge fund, Bridgewater Associates, has more than $100 billion in assets so far.