Bridgewater Associates, the largest hedge fund in the world, still worries about cryptocurrencies being outlawed by governments. He still views bitcoin as digital gold, and he has some to diversify.

Ray Dalio Worried About Government Outlawing Cryptocurrencies

Ray Dalio, founder of

Bridgewater Associates is concerned about the possibility that governments will outlaw cryptocurrency. Dalio is now the chairman of the firm and co-chief investor officer. Bridgewater Associates clients include governments, foundations and pensions.

Dalio expressed concern last week in an interview with CNBC, saying that there is “a reasonable possibility” that cryptocurrencies (including bitcoin) could be banned by the federal government.

He pointed to the time when President Franklin D. Roosevelt signed the Gold Reserve Act in 1934, transferring all of the country’s privately held gold titles and certificates to the U.S. Treasury as an example. An executive explained previously that governments could take similar actions on bitcoin and other cryptocurrency in the event of an economic downturn or inflationary events.

The 72-year-old billionaire to CNBC last week: “I own a very small amount of bitcoin. “I’m not a large owner.”

There are certain assets that you want to own to diversify the portfolio, and bitcoin is something like a digital gold.

” I just see it as diversification. It doesn’t matter to me whether bitcoin will go up or fall. He admitted that he could argue both sides.

The Bridgewater Associates executive stated that it was important to constantly reevaluate investments and to avoid investing in assets that only perform for a limited time. He said that it is important to be careful about where your money is going.

While Dalio sees bitcoin as a digital form of gold and an inflation hedge, he still prefers gold.

Dalio is becoming less realistic as crypto adoption grows globally. Last week, the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, said that Satoshi Nakamoto’s “innovation is real.” A growing number of the world’s largest investment banks are also getting into crypto, including JPMorgan, Goldman Sachs, Citigroup, and Morgan Stanley. In addition, companies are hiring more people to work on crypto projects, including Amazon, Fidelity, and Paypal.

What do you think about Ray Dalio’s concern? Please leave your comments below.

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