The rise in Bitcoin adoption could end badly for the cryptosphere, according to billionaire Ray Dalio. In a recent interview, the founder of the Bridgewater Foundation noted that the widespread adoption of cryptocurrencies would raise fears from the world’s governments, which could eventually make significant efforts to combat BTC.
However, Dalio himself believes in the prospects of Bitcoin and even invests in it. Let’s talk about the situation in more detail.
Note that Ray Dalio often comments on what is happening in the cryptocurrency industry, and his opinion often changes. For example, in January 2021, an entrepreneur made it clear that he considers Bitcoin an «unprecedented invention» that can change the world. At the same time, he announced the desire of representatives of the hedge fund to focus on investments in alternative assets, including BTC.
At the same time, already in August, Dalio made it clear that he still does not doubt the prospects of Bitcoin, but at the moment he prefers to invest in gold. According to him, the precious metal can really save capital from inflation.
We find this approach odd. And although gold does remain relatively stable in price, it does not allow earning, unlike BTC. For clarity, take a look at this graph of changes in the value of two assets. Black in this case represents Bitcoin, while yellow represents gold.
Comparison of changes in the value of Bitcoin and gold
However, now Ray again took the side of BTC. Here are the details of the situation.
What will happen to Bitcoin in the future?
The process of an open fight against Bitcoin has already begun – for example, a few months ago, the Chinese government launched an active campaign against cryptocurrency mining, which led to the expulsion of a huge number of miners from the country. One of the reasons for such a harsh attitude towards the crypt could just be its success in recent years.
Billionaire Ray Dalio
At the same time, an interesting situation is developing on the international arena – while some countries accept and promote Bitcoin (recall that a few days ago it became a legal tender in El Salvador), others are trying to limit its progress. As Dalio notes, the success of BTC in El Salvador is not yet enough for the cryptocurrency to gain its place in the financial system of the future.
Obviously, the economy of El Salvador is not strong enough to be a shining example of the benefits of the introduction of Bitcoin as a recognized means of payment. At the same time, we believe that in the future, the country’s experience will in any case become a reason to contact coins for other states.
According to a recent publication by CryptoPotato, the US is trying to apply new regulations to Bitcoin and other cryptocurrencies. Dalio is confident that these attempts will ultimately lead to targeted pressure on the cryptosphere. In other words, he does not expect anything good from regulators.
An example of this is observed right now. At the moment, there is a conflict between the US Securities and Exchange Commission and the crypto platform Coinbase. Apparently, the regulator is not satisfied with the situation with the exchange’s investment proposals, so it hints at its readiness to file a lawsuit.
At the end of his interview, the billionaire noted that the main issue for investors now should remain the issue of portfolio diversification in assets that can “survive” the potential economic crisis. It doesn’t matter if it is Bitcoin, gold or any other investment. The main thing is to be prepared for the high volatility of all markets and be able to adapt to global trends.
We believe that government efforts can indeed create problems for Bitcoin and the cryptocurrency niche in general, but only in the short term. Nevertheless, such assets are decentralized, and therefore the authorities will not be able to «turn off» them. And the sooner more and more people realize this, the more attractive digital coins will become.
