Ray Daglio: Governments will not allow Bitcoin to be successful

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Billionaire and founder of Bridgewater Associates hedge fund Ray Daglio believes that governments will outlaw Bitcoin if it becomes very successful.

In an interview for Yahoo! Finance, a well-known investor said he would prefer gold to Bitcoin. He reads that „governments will not allow Bitcoin to become something significant“.

„I mean, they will outlaw it, they will use every means possible. They would say, „Now you can’t make deals with bitcoins. You can’t have Bitcoins“. Then people would think: „Is this a criminal offence? Do I have to become a criminal in order to make a transaction?“ They have already outlawed gold. What is wrong with gold? Gold was a means of saving money,“ said Daglio.

„Would I prefer bitcoin gold?“ No, I wouldn’t prefer Bitcoin to gold. Gold will be a means that central banks and countries will choose as an alternative to regular cash. Because every central bank can print cash. But all the time countries have cooperated with each other, they have used gold because that is how they were not afraid that some country might ‚print gold‘ would devalue it. And that’s still our third largest reserve, if you look at the reserves of the central banks. The dollar is first, the euro is second and gold is third,“ he added.

In addition to potential problems with the government, Dalio noted the volatility of the bitcoin: „Today I can’t easily buy something for the bitcoins. As a means of saving, it is very volatile because of speculation. It is not an effective means of saving, and it is also one of the reasons why it is very difficult to use bitcoin for transactions.

Dalio’s cautious stance on bitcoin is different from that of his billionaire colleague Paul Tudor Jones, who recently named it the best inflation protection.