According to Ray Dalio, if bitcoin achieves widespread popularity, regulators will eventually seize control of the cryptocurrency. Ray Dalio is the founder of the world’s largest hedge fund Bridgewater Associates.
Ray Dalio Talks About Regulation
“I believe that if it is truly effective, they will kill it or attempt to kill it at the end of the day. And I believe they will destroy it because they have the means to do so,” Dalio said on CNBC’s “Squawk Box” on Wednesday at the SALT conference in New York.
As the wild rides in the speculative markets continued to attract attention, US officials increased their control of the risky cryptocurrency industry. Chairman Gary Gensler of the Securities and Exchange Commission said Tuesday that the top regulator on Wall Street is working around the clock to develop a set of regulations to safeguard investors by properly regulating the hundreds of new digital assets and currencies.
Bitcoin Being Profitable
Bitcoin has been extremely profitable recently, despite some severe episodes of volatility. The value of the cryptocurrency has more than tripled in the previous year. Additionally, it is currently trading at approximately $47,500. Earlier this year, it reached a peak of almost $60,000.
“El Salvador is taking it on, while India and China are getting rid of it. And you’ve got the US debating about how to regulate it, and it’s still under control,” Dalio added.
El Salvador became the first country to recognise bitcoin as legal money in June. Meanwhile, India is likely to introduce legislation prohibiting the use of cryptocurrencies and punishing miners and dealers. China has begun to tighten down on cryptocurrency marketplaces, forcing miners to cease operations.
Dalio’s Perspective
According to Dalio, bitcoin lacks intrinsic value, which means it has no basic or objective value.
“From a historical viewpoint, there were many items that didn’t have inherent worth but had perceived value. Then it became 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,” Dalio speculated.
Despite this, the billionaire investor believes bitcoin is a decent alternative to cash, and he holds a lesser amount of bitcoin than he does gold in his portfolio.
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