Governments could stop inflows into Bitcoin, Billionaire Ray Dalio says
BTC Peers
Published Mar 16, 2021 04:51PM ET
Governments could stop inflows into Bitcoin, Billionaire Ray Dalio says
According to billionaire Ray Dalio, the U.S. government could prevent capital flows into Bitcoin. The Bridgewater Associates founder suggested in a LinkedIn (NYSE:LNKD) post that tax hikes could be used to manipulate flows into several asset classes, including Bitcoin and gold.
Dalio had earlier said that governments would try to kill Bitcoin if it succeeds. True to his assertions, some governments have taken steps to prohibit Bitcoin trading, ban the digital asset, and even criminalize possession. Dalio wrote:
If history and logic are to be a guide, policymakers who are short of money will raise taxes and won’t like these capital movements out of debt assets and into other store holds of wealth assets and other tax domains so they could very well impose prohibitions against capital movements to other assets (e.g., gold, Bitcoin, etc.) and other locations.The billionaire appears to be a firm Bitcoin believer. Dalio believes that cash is trash. For this reason, he has urged investors to put their money in a “well-diversified” portfolio.
I believe cash is and will continue to be trash (i.e., have returns that are significantly negative relative to inflation) so it pays to a) borrow cash rather than to hold it as an asset and b) buy higher-returning, non-debt investment assets.
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