Ray Dalio, the man behind the $150 billion hedge fund Bridgewater Associates had a recent interview with Yahoo. He said there is a “good probability” bitcoin may be outlawed similar to what happened with gold last 1934.
Dalio is referring to the 1934 Gold Reserve Act. This law mandated all monetary gold to be transferred to the U.S. Treasury. This is for the sole purpose that financial institutions and citizens are not allowed to hold gold.
Dalio further talked about why he thinks bitcoin can be banned in the US. The hedge fund manager explained,
Every country treasures its monopoly on controlling the supply and demand. They don’t want other monies to be operating or competing, because things can get out of control. So I think that it would be very likely that you will have it under a certain set of circumstances outlawed the way gold was outlawed.
He also pointed out India’s current situation. The country is currently exploring how to outlaw cryptocurrencies. It was reported that this law can shut down all crypto activities in their country. This includes halting crypto holding, trading, and even blocking exchange’s Internet Protocols (IP).
With that said, a government ban can definitely cause demand to drop. It will be difficult to face if other countries follow the ways of India. He may not be an expert but he thinks there is a whole way to make it work. Dalio believes governments can do surveillance and track everything.