Billionaire investor and the world’s biggest hedge fund founder Ray Dalio said that the history of money has left hints that bitcoin could face being outlawed by the U.S. government, just as gold was in 1934.
“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,” he said on the podcast Influencers with Andy Serwer on Friday (March 26). Serwer is editor in chief for Yahoo! Finance.
The Bridgewater Associates founder and co-chief investment officer pointed to the 1934 Gold Reserve Act, which prohibited people from holding gold and mandated the transfer to the U.S. Treasury.
“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 it would be very likely that you will have it under a certain set of circumstances outlawed the way gold was outlawed,” Dalio said on the program.
He also pointed to India’s current exploration into banning cryptocurrencies, including any trading or holding. The country is also looking into blocking the exchange’s internet protocols (IP).
The $150 billion hedge fund founder also said that it’s possible bitcoin could get some kind of concessions in the U.S. based on the digital asset’s overall success over the past decade. Bitcoin soared some 650 percent over the past year, and has been hovering around $51,000 over the past few days after reaching a record high of $60,100, per Yahoo! Finance.
There has not been any indication, however, that the U.S. is looking to totally outlaw bitcoin. Many investors, as well as government agencies in the US. and elsewhere, have argued over whether bitcoin is a currency or a speculative asset.
India’s proposed regulations would effectively outlaw the possession, issuance, mining or trading of cryptocurrency. The legislation being put forth by the Finance Ministry would give crypto holders six months to get rid of holdings or face a fine.
