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The United States could impose a similar prohibition on gold possession as it did in the 1930s, except this time for Bitcoin.
Fear, confusion, and scepticism have returned as the Bitcoin correction deepens, with billionaire hedge fund investor Ray Dalio adding a whole lot 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 reported that there is a “good chance” that the United States government would prohibit Bitcoin ownership, as it did gold ownership in the 1930s.
Dalio clarified that this was because political officials at the time did not allow gold to compete with fiat money and credit as a store of wealth.
“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 founder and philanthropist, who likened Bitcoin to gold in January, found out that India’s government is now attempting to ban Bitcoin and blockchain exchange in general. He said that he is not an expert, but he thinks it should be monitored and the government can find out who is involved.
However, there was a ray of hope at the end of Dalio’s bleak forecast as he admitted that Bitcoin 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 reported that the United States government can threaten those who are abandoning the dollar in favour of Bitcoin as the country becomes “unhospitable to capitalism” in preparation for “shocking” tax reforms to address the national debt crisis.
The remarks come as Bitcoin’s correction deepens and signs that the bull market is approaching its end appear on-chain. BTC has fallen 13.5 percent from its all-time peak of $60,100 to about $52,000 today.