Ray Dalio, a billionaire investor and founder of Bridgewater Associates, warns that there is a high probability that governments will act to ban Bitcoin.
Bitcoin threatens governments’ monopoly on money:
The end of 2020 saw Dalio’s controversial statement towards Bitcoin, which he described as a weak trading medium and its high volatility reduces the value of its use.
A few weeks ago, Dalio published an article explaining his position on Bitcoin, in which he indicated that after analyzing Bitcoin more, he has now become a huge fan of it.
The sticking point for Dalio has always been the possibility of governments shutting down Bitcoin.
In a recent interview with Yahoo Economics, Dalio reiterated this point, referring to the government’s control over the money supply.
In its meaning, Dalio stated:
The authorities are able to take the next logical step of eliminating competition, with each country having a monopoly over the supply and demand of the money.
They don’t want the other money to work or compete, because things can get out of hand.
So I think it is very likely that Bitcoin will get blockade or get crammed into the corner to make gold work.
To support his statements, Dalio used an example of what is happening in India today, where, under the proposed legislation, the possession, issuance, mining, circulation and transfer of cryptocurrencies would be criminalized.
And for your information, Indian Finance Minister Nirmala Sitraman stated that the government has no intention to completely close the door to digital currencies.
Government regulation and cryptocurrency investors:
The Financial Action Task Force (FATF) published its latest cryptocurrency guidance last week.
Peter Van Falkenberg, Research Director at Coin Center, criticized the changes, describing them as non-judicial, collective surveillance.
He drew attention to amendments to the monitoring obligations of cryptocurrency trading platforms, and the crackdown on privacy and peer-to-peer transactions.
All digital currency service providers (VASPs) and financial institutions are required to keep identifying information about all transacting parties.
Van Falkenberg worries that the proposed changes would stifle cryptocurrency innovation and scare privacy investors.
In conclusion, given that governments did not eliminate Bitcoin in its early days when its infrastructure was small, but now with the expansion of its use and the popularity of big-name institutions towards it, it is difficult as it was to ban Bitcoin and the task will be almost impossible day after day.