Ray Dalio said he would rather own Bitcoin (BTC) rather than bonds. However, he also stated that there are various obstacles in front of cryptocurrencies.
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The founder of Bridgewater Associates said in a recent Bloomberg interview that problems can arise if people start to prefer leading cryptocurrency over traditional assets.
“I think the biggest risk of Bitcoin is its success… As it becomes more of a threat, that is, when people want to sell their bonds and buy Bitcoin, there will be more transactions. There is a possibility that it will lose control, which is an existential risk.”
He says that when people see Bitcoin as a better store of value, the government may perceive it as a threat.
“The more income you get from here, the more you can prefer Bitcoin to bonds. Personally, I prefer Bitcoin over a bond. The more this happens, the more Bitcoin can be compromised. Control of this can be lost and that is a risk.”
Dalio had previously warned that the US could ban Bitcoin when people were looking for an alternative to bonds and currencies during the global financial crisis.
In addition, Dalio drew attention to the Gold Reserve Act, which was enacted to prevent gold from competing with the US dollar.
In March, Dalio said that the US government could impose higher taxes on Bitcoin and gold to prevent investors from moving their capital from debt assets.