For the past few months, optimism has taken hold of the crypto world. As more and more traditional companies start to enter the crypto market. Expecting regulatory agencies in the United States and the rest of the world to follow this path, increasing their support for cryptocurrencies. However, for investor Ray Dalio, Bitcoin could be outlawed by these same agencies.
A history of deregulation
Bitcoin’s history with governments has been a complicated one at best. And it is that, the attitude of governments around the world, and especially of their regulatory agencies, has been moving from indifference to open hostility. Especially in the face of the possibility that the massive adoption of Bitcoin leads to a loss of the power that governments can exercise over the money market today.
This has put the crypto community in a tough spot. Well, while some countries like India were taking steps to totally ban the use of Bitcoin. Others like the United States did not take decisive action to regulate the sector. Which prevented the creation of an institutional framework within which the world of cryptocurrencies can develop its full potential.
Something that was expected to start to change very soon. As the attitude of the general public and large companies towards Bitcoin begins to improve, increasing adoption in the use of the cryptoactive. However, for famous investor Ray Dalio, right now there is a real risk that Bitcoin will be outlawed.
Bitcoin made illegal?
Thus, in a recent interview with Yahoo Finance, Ray Dalio, founder of the Bridgewate Associates investment fund, commented that Bitcoin could be made illegal, just as personal gold ownership was in 1934. When through the Gold Reserve Act, the The US government made it illegal for its citizens to hold gold “because the rulers did not want gold to compete with money and credit as a store of value.”
«All countries have a monopoly on controlling supply and demand. They don’t want other currencies to trade or compete, because things can get out of hand. So I think it would be very likely that, under a certain set of circumstances, it would be made illegal in the same way that gold was made illegal.». Dalio continues, explaining a topic that he will also touch on in his next book “The Changing World Order.”
If Bitcoin is outlawed, just as Dalio predicts, this could strongly decrease the demand for the cryptocurrency. Well, although the government cannot destroy the cryptocurrency Blockchain, it can identify those who use it and punish them. Despite which, Ray Dalio also clarifies that Bitcoin is a resilient asset that has many advantages that could allow it to survive a blow like that.