Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, believes that regulators would eventually take control of bitcoin if the cryptocurrency gains widespread success.
“I think at the end of the day, if he’s really successful, they will kill him or try to kill him. And I think they will kill him because they have ways of killing him “Dalio told Andrew Ross Sorkin Wednesday on CNBC’s “Squawk Box” from the SALT conference in New York.
US regulators have stepped up their oversight of the volatile cryptocurrency space as wild rides in speculative markets continued to draw attention. Securities and Exchange Commission Chairman Gary Gensler said Tuesday that Wall Street’s top regulator is working overtime to create a set of rules to protect investors by better regulating the thousands of new digital assets and currencies.
Despite some intense bouts of volatility, bitcoin has been quite successful lately. The cryptocurrency has more than quadrupled in the past 12 months and was hovering around $ 47,500 on Wednesday. It peaked above $ 60,000 earlier this year.
“You have El Salvador taking over and you have India and China getting rid of it. And you have America talking about how to regulate it and it could still be controlledDalio said.
In June, El Salvador became the first country to adopt Bitcoin as legal tender. Meanwhile, India is expected to propose a law banning cryptocurrencies and penalizing miners and traders. China has begun cracking down on crypto markets, ordering miners to shut down operations.
Dalio said that bitcoin has no intrinsic value, which means that the asset lacks fundamental and objective value.
“There are so many things in a historical perspective that had no intrinsic value and had a perceived value. And then it got hot and cold. It can be in any form. You just have to know what it is. It could be tulips in Holland ”, Dalio said.
Still, the billionaire investor said that bitcoin is a good alternative to cash and that he owns a smaller percentage of the digital token compared to his gold exposure in the portfolio.
“I think it is worth considering all the alternatives to cash and all the alternatives to other financial assets. Bitcoin is a possibility. I have a certain amount of money in bitcoins “Dalio said. “It’s an amazing achievement to have brought it from where the programming happened to where it is through the test of time.”