The U.S. could repeat its 1930s ban on gold ownership but for Bitcoin.
As the Bitcoin correction deepens, the fear, uncertainty, and doubt has returned, with billionaire hedge fund manager Ray Dalio adding a whole bunch more of it.
In an interview with Yahoo Finance’s editor-in-chief on March 24, the founder of the $150 billion hedge fund Bridgewater Associates stated that there is a “good probability” that the U.S. government could ban Bitcoin just as it did with gold ownership in the 1930s.
That happened because government leaders at the time did not want gold to compete with fiat money and credit as a store of wealth, Dalio added.
“They don’t want other monies to be operating or competing because things can get out of control. So I think that it would be very likely that you will have it, under a certain set of circumstances, outlawed the way gold was outlawed.”
The billionaire hedge fund manager and philanthropist, who called Bitcoin “one hell of an invention” and compared it gold in January, pointed out that India’s government is already trying to ban Bitcoin and cryptocurrency trading in general. He added that he is not an expert but asserted that it can be tracked and the government can work out who is dealing with it.
However, there was a little light at the end of Dalio’s gloomy outlook when he acknowledged BTC has stood the test of time as an asset class.
“Bitcoin has proven itself over the last 10 years, it hasn’t been hacked. It’s by and large, therefore, worked on an operational basis. It has built a significant following. It is an alternative, in a sense, storehold of wealth. It’s like a digital cash. And those are the pluses.”
On March 16, Dalio stated that the U.S. government could target those ditching the dollar for Bitcoin as it becomes “inhospitable to capitalism” in preparation for “shocking” tax changes to tackle the national debt crisis.
The comments come as Bitcoin’s correction continues to deepen as signs that the bull market is entering its latter stages have emerged on-chain. BTC has corrected by 13.5% from its all-time high of $60,100, to current prices of around $52,000.