Dalio: If Bitcoin is very successful, regulators will try to destroy it
Bitcoin has no intrinsic value, but it is useful
Ray Dalio invests a small amount in Bitcoin

Ray Dalio warns again about the violent end of Bitcoin. Famous investor, whose hedge fund Bridgewater Associates is the largest hedge fund in the world with assets of over US $ 100 billion, said in the spring. The largest cryptocurrency will soon be banned. Now Dalio issued a new warning at the SALT conference in mid-September.

Dalio warns of Bitcoin’s damage – SEC sees conditions in “Wild West”

“If it’s really successful, I think they will destroy it and they will try to destroy it, I think they will destroy it because they have the potential to destroy it,” the hedge fund manager said in an interview with CNBC in response to the question of whether cryptocurrencies like Bitcoin have any future control over the crypto sector. .

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The day before the interview, there were statements by SEC boss Gary Jensler, who, according to CNBC, spoke to the U.S. Senate about the US financial regulator Bitcoin working to monitor and monitor thousands of new digital currencies and better manage assets. “Currently investors with cryptocurrencies in the financial sector do not have adequate protection, supply, trade or credit,” Jensler said. The whole region is “like the Wild West,” the SEC chairman said.

Although the U.S. Securities and Exchange Commission argues for the planned regulation of cryptocurrencies to protect investor interests, the government does not want bitcoin to be very successful in the mainstream, according to Ray Dalio. If so, he believes it will soon mean the end of the cyber slogan. That’s it El Salvador approves Bitcoin as legal tender, He has no indication that this will happen in the USA – because there are enough examples of countries that are quite the opposite. “El Salvador accepts it and India and China get rid of it. Then the US talks about how to control it and still control it,” he said.

Bitcoin as an alternative to money and with the benefits of diversification

According to Dalio, the fact that non-governmental currencies are not desired does not mean that Bitcoin has no place or value and therefore will automatically fail. Although cryptocurrency has no intrinsic value, it is historically not uncommon for investment objects. “From a historical point of view, there are many things that have no inherent value. You need to know what bitcoin is – it could be” tulips in the Netherlands, “Dalio told CNBC, referring to 17th-century tulip mania.

For his part, Bitcoin was a “practical investment solution” and as long as it was accepted as a way to make money, the founder of Bridgewater Associates continued. “I think we should look at all the alternatives to money and all the alternatives to other financial assets. Bitcoin is a possibility,” Dalio told CNBC in an interview. So, he invested a certain amount in Bitcoin itself. However, the share of gold in his portfolio is small – it is very small compared to other asset classes. However, in his opinion, there is something for himself, Dalio said – and suggested to other investors to diversify their holdings and include Bitcoin.

Finanzen.ch Editorial Team