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Ray Dalio says if bitcoin is really successful, regulators will ‘kill it’


Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, believes regulators would ultimately take control of bitcoin if the cryptocurrency gains mainstream success.

I believe that if the cryptocurrency is really successful they will attempt to kill it. And I think they will kill it because they have ways of killing it,” Dalio told Andrew Ross Sorkin Wednesday on CNBC’s “Squawk Box” at the SALT conference in New York.

The volatile cryptocurrency market has been under increased scrutiny by U.S. regulators as more attention was paid to the wild rides on the speculative stock markets. 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 through better regulation of the thousands of new digital assets and coins.

Ray Dalio (Bridgewater Associates) attends China Development Forum, Beijing, China on March 23, 2019.

Thomas Peter | Reuters

Despite some heavy bouts of volatility, bitcoin has been quite successful as of late. It has quadrupled in value over the last twelve months, and it was at $47,000. This year, it reached an all-time high of over $60,000

“You have El Salvador taking it on and you have India and China getting rid of it. Dalio explained that even though the United States has discussed how to regulate bitcoin, it is still possible for it to be managed.

In June, El Salvador has become the first country to adopt bitcoin as legal tender. India plans to introduce a law that would ban cryptocurrency and penalize traders. China began crackingdown on cryptocurrency markets by ordering miners to close their doors.

Dalio said bitcoin doesn’t have intrinsic value, meaning the asset lacks fundamental and objective worth.

There were many historical things that had intrinsic value but also had perceived value. Then it got hotter and then it got colder. You could have it both ways. All you have to do is find out what it could be. Dalio stated that the tulips could come from Holland.

Dalio said that bitcoin was a great alternative to cash and that he has a lower percentage of the token than his exposure to gold.

It’s worthwhile to consider all of the options to cash as well as all other financial assets. Bitcoin could be a viable option. Dalio explained that there is a small amount of bitcoin in my account. It’s an incredible accomplishment that it has been able to go from the place it was programmed to this point.

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