Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, revealed that he owns some Bitcoin. The funny thing is that in the past you expressed pessimism about the future of BTC, what made you change your mind?
In an early May interview with CoinDesk, Dalio disclosed that he now owns BTC. At the time, the cryptocurrency was not weakened as it is today, and your optimism about it may have waned. “I have some Bitcoin,” he commented, adding, “Bitcoin’s biggest risk is its success,” he said.
Dalio’s reveal is the closest he has come to backing Bitcoin, but his growing lack of confidence in the dollar is further proof of his confidence. He also pointed out during the interview that he would rather have Bitcoin than a bond.
However, he also expressed his fear that the US government could find a way to crack down on people who own Bitcoin.
The biggest risk lies in success
Bitcoin earned Dalio’s respect, but he believes its success could cause the US government to try to limit the asset in some way. In March, the billionaire suggested that the United States government could ban Bitcoin as it did gold in the 1930s, as the digital currency is seen as a threat to treasuries.
“One of the big things, I think, as a concern is that the government has the ability to control… Bitcoin, or digital currencies. They know where they are and they know what’s going on. In January, he claimed that the government would try to kill Bitcoin if it is too successful, as they have the power to do so.
Dalio distrusts the dollar, but does he fully trust Bitcoin?
The answer depends on how well Bitcoin performs as of now. His distrust of the dollar is clear, but that is not synonymous with the fact that he has turned his full support to Bitcoin.
Do you need to borrow money? You have to print that. Do you need more money? So taxes go up and that produces a dynamic. Now I can continue talking about what happens in that dynamic. They can be capital controls. I learned painfully in 1971 that it makes stocks go up. It makes… gold, bitcoins, real estate, everything goes up, because it’s really going down in dollars. And that’s the part of the cycle we’re in. “
He certainly owns Bitcoin now, but his backing comes at a time when Bitcoin is under the most pressure it has experienced in a long time. One of these difficulties is that the Chinese government seeks to crack down on the control of BTC in the country, forcing the miners to move their operations abroad and sell their mining equipment. Therefore, although Ray Dalio can claim that he respects cryptocurrency, it all depends on what happens from now on.