Crypto Killer: Ray Dalio Says Bitcoin Is Being Killed by Regulators
American billionaire Ray Dalio expressed concerns about countries like India and China strangling the growth of world's largest valued cryptocurrency, Bitcoin. Speaking to the press earlier this week, the 72-year-old former co-chief investment officer of the world's largest hedge fund, Bridgewater Associates, said he fears that if Bitcoin gets more popular, global regulators will try to kill the cryptocurrency. The business tycoon also said that despite not being totally onboard with digital currencies in the past, he has converted a portion of his portfolio into Bitcoin.
Dalio Says Bitcoin Is Being Killed by Regulators
Ray Dalio, a billionaire founder and chairman of the largest hedge fund in the world, Bridgewater Associates, is one of the investors in Bitcoin. While some of the most prominent investors in the world like Warren Buffet, Jamie Dimon and John McAfee have all voiced their concerns about Bitcoin, Dalio has been more open to the cryptocurrency than other notable personalities. Dalio previously suggested that Bitcoin could be the way forward for banks. However, the American billionaire has now said he believes the world's leading cryptocurrency, Bitcoin, is being strangled by regulators, fearing that regulators may put an end to the digital currency. “It’s going to get clobbered in a lot of ways.
Background on Dalio
Dalio was not alone in sharing his concerns regarding Bitcoin. Bill Gates, as per a report by BBC, recently said that Bitcoin is only suitable for 'fraudsters, killers and thieves.' There are many times I've heard people calling Bitcoin a bubble. At some point in time, it's going to come crashing down." On the other hand, David Tepper, the hedge fund manager who, just last week, was featured in a CNBC report, said that Bitcoin is the most overvalued asset he's ever seen. Tepper, who made Forbes list of the world's richest hedge fund managers in 2017, said that the price of Bitcoin needs to fall to around $3,000 before it becomes a good investment.
What's Holding Bitcoin Back?
During a recent interview at the World Economic Forum in Davos, Switzerland, Dalio said Bitcoin is more like a pyramid scheme than a currency, and it is "failing." The billionaire explained, We have some risk of regulatory [aspects] because governments are going to find out they don't like this [and] may try to go after it. You will probably see high volatility in the currency if you get back to 2008 levels, and at times you will have to be cautious because it will be used as money for black market things. He added that governments have been talking about banning Bitcoin for quite a while and will not let the virtual currency grow and gain acceptance.
Dalio's Reasoning for Investing In Bitcoin
In an interview with the BBC, Dalio said he has converted some of his investments into Bitcoin, one of the world's most popular digital currencies, on the condition that he needs to be in the market before it goes up or down, as his assets need to be liquid. The famous billionaire reportedly said: "Well, I've had several conversations, actually several long conversations with Jamie Dimon [the CEO of JPMorgan Chase], who has made it clear he thinks they are frauds. I've talked with people like that. We've talked about it a lot." On the other hand, Dalio also added that he is not anti-Bitcoin and he doesn't reject the technology entirely. He further said that he doesn't like Bitcoin as it has grown too popular and is probably too unstable.
The only thing that matters now is that Bitcoin price is soaring higher above $13,200 as we move forward to the second quarter of 2018. During the first quarter of 2018, the world's first cryptocurrency traded at a rate of $996.65. So, $13,200 is the new all-time high. As a result of such price action, cryptocurrency prices have surged throughout the second quarter of 2018. While the cryptocurrency prices were the main theme throughout the first quarter of the year, the money inflow was arguably the top story during the first quarter. After a brief hiccup in February, Bitcoin, Ethereum, and Ripple have rallied back to all-time highs. It should be noted that the world's largest cryptocurrency, Bitcoin, had a dramatic crash last year.