Ray Dalio warns that if bitcoin becomes “really successful,” regulators will “kill it,”

Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund, believes that if bitcoin becomes “really successful,” regulators will “kill it,” citing his prior fears about governments outlawing cryptocurrencies. Despite this, he considers bitcoin to be a viable alternative to cash and owns some.

Billionaire Hedge Fund Manager Ray Dalio Warns of Regulators Killing Bitcoin At the SALT conference in New York on Wednesday, Dalio warned that if bitcoin becomes mainstream, regulators will come after it.

Dalio is now the chairman and co-chief investment officer of Bridgewater Associates. Endowments, governments, foundations, pensions, and sovereign wealth funds are among his firm’s clientele. In reference to bitcoin, Bridgewater CEO said:

I think at the end of the day if it’s really successful, they will kill it, and they will try to kill it. I think they will kill it because they have ways of killing it.

This was not Dalio’s first warning about governments destroying bitcoin. While he did not expand on how the regulators will destroy bitcoin, he did say in May that the crypto industry could face heavy regulation. He also stated on multiple occasions that governments might ban or outlaw bitcoin.

Regulators around the world have been ramping up efforts to regulate cryptocurrencies, including in the United States, where Gary Gensler, head of the Securities and Exchange Commission (SEC), has requested more funds to improve control of the crypto sector.

Other countries actively attempting to control cryptocurrencies include India, which is working on a cryptocurrency bill; China, which has been cracking down on crypto activity; and South Korea, where a new crypto law will take effect on September 24. El Salvador, on the other hand, has made bitcoin legal money alongside the US dollar. Dalio explained:

El Salvador is taking it on, while India and China are getting rid of it. And the US is debating how to regulate it, implying that it can still be managed.

Bitcoin, according to Dalio, lacks intrinsic value, which means it has no fundamental or objective worth. “There are so many things in history that didn’t have fundamental value but had perceived value,” he said. Then it got hot, and then it got chilly. Either way, it’s possible. All you have to do is figure out what it is. Tulips in Holland could be the culprit.”

Despite this, the billionaire investor holds a tiny quantity of bitcoin because he considers it to be a good alternative to cash. According to the Bridgewater Police Chief,

I believe it is worthwhile to evaluate all of the alternatives to cash as well as all of the alternatives to other financial assets. Bitcoin is an option. I have a specific amount of bitcoin… It’s an incredible accomplishment to have brought it from where the programming began to where it is now.

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