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Billionaire Ray Dalio predicts a possible “outlaw Bitcoin” similar to gold in 1934

Countries’ ban on Bitcoin would likely negatively affect the price of cryptocurrency

Founder of the largest hedge fund of Bridgewater Associates and author of the bestseller “Principles: Life and Work”, Ray Dalio said that there is a possibility that Bitcoin will be banned by governments.

Speaking to Yahoo Finance, Dalio compared Bitcoin’s potential ban to the United States’ illegal 1934 order on privately owned gold.

Dalio’s position comes with the increase in the value of Bitcoin in recent months, reaching a record high above $ 61,000 on March 14, 2021. The asset recovery started in the wake of rising debt levels and low interest rates in 2020.

The billionaire investor points out that India is already creating the environment to make possession of Bitcoin illegal, as it can compete with money, despite the 30% growth of crypto transactions on India’s digital asset exchanges.

In his next book, “The Changing World Order,” Dalio points out that the ban on gold in the U.S. was due to fears that the precious metal could replace money, a fate that could happen to Bitcoin.

“Each country values ​​its monopoly on supply and demand control. They don’t want other money to be operating or competing because things can get out of hand. So I think it would be very likely that, in a given set of circumstances, you would make it illegal, just as gold was banned, ”said Dalio.

In the case of a government ban, the demand for Bitcoin is likely to fall and, consequently, the price. At the same time, Dalio also doubts that Bitcoin’s privacy can be protected in such circumstances.

Ray Dalio praises Bitcoin growth

In addition, Dalio praised Bitcoin for proving itself over the past decade that it has emerged as a wealth reserve.

“Bitcoin has proven its worth in the past ten years. It was not hacked. It is, therefore, generally worked on an operational basis. He built a significant number of followers. It is an alternative, in a sense, a deposit of wealth. It’s like digital money. And those are the advantages ”, added Dalio.

His sentiment came when Tesla CEO Elon Musk announced that it is now possible to buy at Tesla using Bitcoin. The announcement saw Bitcoin’s price soar to $ 56,804 so far, according to data provided by Coinmarketcap.

“Now you can buy a Tesla with Bitcoin”

Dalio is changing his position at BTC

In the recent past, Dalio somersaulted his bitcoin booth. After the asset reached the $ 17,000 mark in November 2020, he also mentioned that the main digital currency may be banned, although it rejects its value reserve status.

However, in December last year, Dalio once again changed his position on Bitcoin and other cryptocurrencies. He stated that Bitcoin has evolved, gaining a comparison with gold. Dalio hailed Bitcoin as a perfect gold diversifier.

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