Ray Dalio, a billionaire hedge fund manager, is still concerned that the government would ban cryptocurrency.

Bridgewater Associates, the world’s largest hedge fund, is still afraid that governments would prohibit cryptocurrency. Despite this, he considers bitcoin to be digital gold and holds some for variety.

Ray Dalio Is Concerned That Cryptocurrencies Will Be Prohibited By The Government
Ray Dalio, the founder of Bridgewater Associates, is still afraid that governments would prohibit cryptocurrencies. Dalio is currently chairman and co-chief investment officer of the business. Bridgewater Associates’ customers are endowments, governments, foundations, pension funds, and sovereign wealth funds.

In a recent interview with CNBC, Dalio expressed his worry, saying that there is a “reasonable chance” that the federal government would prohibit cryptocurrencies, including bitcoin.

He cited the signing of the Gold Reserve Act by President Franklin D. Roosevelt in 1934, which transferred all of the country’s privately owned gold titles and certificates to the US Treasury. Any big economic crisis or inflationary catastrophe, according to the CEO, may drive governments to take similar measures against cryptocurrencies such as bitcoin.

“I own a very small amount of bitcoin. I’m not a big owner.” The 72-year-old billionaire told CNBC last week. He went on to say that there are some assets that you should hold to diversify your portfolio, and bitcoin is similar to digital gold.

“I just think of it as diversification. By and large, I don’t really know whether bitcoin is going to go up or down. I could argue both sides of that,” he confessed. According to the Bridgewater Associates CEO, it is critical to assess investments regularly and avoid purchasing assets that perform well for a limited period.

“Be careful about what you’re putting your money in⁠,” he stated, adding: “Make the diversification global, not just in the United States.”

While Dalio sees bitcoin as a digital equivalent of gold and a hedge against inflation, he still favors gold because of its long history as a “storehold of wealth.” “If you put a gun to my head and said, ‘I can only have one,’ I’d choose gold,” he remarked.
However, as bitcoin usage grows throughout the world, Dalio’s fear about a crypto prohibition becomes less and less plausible. Satoshi Nakamoto’s “innovation is real,” according to Gary Gensler, head of the US Securities and Exchange Commission (SEC).

JPMorgan, Goldman Sachs, Citigroup, and Morgan Stanley are among the world’s major financial banks that have entered the crypto market. In addition, corporations including Amazon, Fidelity, and Paypal are employing more individuals to work on crypto projects.