Ray Dalio, a US-based Hedge Fund Manager, said that Bitcoin is like digital cash in nature. He compared Bitcoin with other alternative assets and mentioned that the world’s largest cryptocurrency has proven itself over the last decade.
During an interview with Andy Serwer, the Editor-in-Chief of Yahoo Finance, Dalio said that despite the positive aspects of Bitcoin, the cryptocurrency could face a ban in the US. The Founder of Bridgewater associates highlighted the probability of a US ban on Bitcoin, just like a ban on gold ownership in the 1930s.
“Every country treasures its monopoly on controlling the supply and demand. They don’t want other monies to be operating or competing, because things can get out of control. So, I think that it would be very likely that you will have it under a certain set of circumstances outlawed the way gold was outlawed,” Dalio said during the interview.
In December 2020, the Hedge Fund Manager termed Bitcoin as a good tool for portfolio diversification. In a Reddit post, Dalio compared BTC with gold.
Bitcoin and Privacy
Dalio highlighted the recent events in India regarding a potential ban on Bitcoin and other cryptocurrency assets. He added that a government ban will cause a sharp drop in demand for the world’s largest cryptocurrency. The hedge fund manager remained uncertain about the privacy of Bitcoin and other digital assets.
“My understanding from people who are sort of in government surveillance is yes, they can understand, they can track it. They can know who’s dealing with it,” he added.
While talking about the positive aspects of Bitcoin, Dalio said: “Bitcoin has proven itself over the last 10 years. It hasn’t been hacked. It has built a significant following. It is an alternative, in a sense, store hold of wealth. It’s like digital cash. And those are the pluses.”
Bitcoin is up by more than 80% since the start of 2021. The cryptocurrency currently has a market dominance of nearly 60%.