Could Bitcoin One Day Be Banned by the US Government?

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Could Bitcoin One Day Be Banned by the US Government?


Billionaire investor Ray Dalio, the founder of the world’s largest hedge fund Bridgewater Associates, with $ 150 billion in assets under management, said there was a “good probability” that the US government could ban Bitcoin , in the same way that he banned gold in the 1930s.

Speaking to Yahoo Finance editor-in-chief Andy Serwer in an interview, Dalio pointed out that the Gold Reserve Act of 1934 prohibited individuals from owning the precious metal because “government officials did not want gold to come in. compete with money and credit. as a store of wealth. ”

According to the billionaire, the government could also make it illegal to own Bitcoin as the cryptocurrency has risen amid high debt levels, low interest rates and stimulus measures that see investors looking for alternatives to obligations.

Dalio said:

Each country cherishes its monopoly on controlling supply and demand. They don’t want other funds to work or compete with each other because things can get out of hand. So I think it would be very likely that you would have it in some prohibited circumstances like gold was banned.

The billionaire noted that the Indian government would also be looking for ways to ban Bitcoin. If the US government banned the flagship cryptocurrency. He defends that demand would plunge and the price of the cryptocurrency would drop.

Dalio then revealed that he believed, based on his “understanding of people who are sort of under government surveillance”, that the government can track Bitcoin transactions and “know who is doing it.” It should be noted that the Bitcoin blockchain is public and although users are pseudonyms, transaction tracking is possible and several companies specialize in this area.

The identities of Bitcoin users can then be found when they attempt to cash out, and through their use of services that have know-of-the-customer (KYC) checks, for example. The nature of the blockchain allows companies to explore transaction activity and, for example, determine the percentage of crypto transactions associated with illicit services.

The billionaire, who admitted he is not a cryptocurrency expert, then pointed out that BTC has certain advantages:

It was not hacked. It therefore generally operated on an operational basis. He built an important following. It is an alternative, in a sense, a store of wealth. It’s like a digital currency. And these are the advantages.

Earlier this year, Dalio said Bitcoin was “hell of an invention” and that he was considering investing in cryptocurrencies for new funds that provide clients with protection against fiat currency degradation. The investor, in a note sent to clients, added that “there aren’t many gold-like alternative assets right now where the need is growing. ”

Dalio found it difficult to value digital assets, noting that Bitcoin has the potential to make investors “very rich,” as well as “disrupt the existing monetary system.” The memo stressed that this is “what Bitcoin looks like to this non-expert”, and added that it was “looking forward to being corrected and learning more”.

Featured image via Pexels.

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