Bridgewater Associates Chairman Ray Dalio attends the China Development Forum in Beijing, China on March 23, 2019.
Thomas Peter | Reuters
Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, believes that if the cryptocurrency gains mainstream success, regulators would ultimately take control of Bitcoin.
“I think if it is really successful they will kill it at the end of the day and try to kill it. And I think they will kill it because they have ways to kill it,” Dalio told Andrew on Wednesday Ross Sorkin on CNBC’s “Squawk Box” at the SALT conference in New York.
U.S. regulators have stepped up their oversight of the volatile cryptocurrency space as the wild rides in speculative markets continued to attract attention. Securities and Exchange Commission chairman Gary Gensler said Tuesday that Wall Street’s top regulator was working overtime to put in place a set of rules to protect investors by better regulating the thousands of new digital assets and coins.
Despite some strong volatility, Bitcoin has been quite successful lately. The crypto has more than quadrupled in the past 12 months, trading at around $ 47,500 on Wednesday. It peaked at over $ 60,000 earlier this year.
“El Salvador is doing that, and India and China are getting rid of it.
In June, El Salvador became the first country to introduce Bitcoin as legal tender. Meanwhile, India is expected to propose a law banning cryptocurrencies, penalizing miners and traders. China has started cracking down on the crypto markets and ordering the miners to shut down.
Dalio said Bitcoin has no intrinsic value, which means that the asset lacks fundamental and objective value.
“There are so many things from a historical perspective that had no intrinsic value and had a perceived value. And then it got hot and it got cold. It could be either way. You just have to know what it is. It could be tulips in Holland, “said Dalio.
Still, the billionaire investor said that Bitcoin is a good alternative to cash, and he owns a smaller percentage of the digital token compared to his gold exposure in the portfolio.
“I think it’s worth considering all the alternatives to cash and all the alternatives to the other financial assets. Bitcoin is one possibility. I have a certain amount of money in Bitcoin, ”said Dalio. “It’s an amazing feat to have got it from where this programming occurred to where it is by the test of time.”
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