Billionaire Investor Ray Dalio Says Bitcoin Could Soon Be 'Outlawed' In America

News & Politics
Gettyimages | Dan Kitwood

Tyler MacDonald

During a recent interview with Yahoo! Finance Editor-in-Chief Andy Serwer, billionaire and Bridgewater Associates founder Ray Dalio argued that bitcoin will likely be outlawed by the United States government.

"Every country treasures its monopoly on controlling the supply and demand. They don’t want other monies to be operating or competing, because things can get out of control," he said.

"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."

"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."

Dalio Pointed To The American Outlawing Of Private Gold

The possible outlawing of bitcoin is not as far-out as it might sound. In his forthcoming book, The Changing World Order, Dalio noted that the U.S. government used the Gold Reserve Act of 1934 to prohibit private ownership of gold. The legislation claimed this to be necessary to prevent gold from becoming competition for money and credit.

Yahoo! Finance echoed Dalio and claimed that similar legislation could soon be enacted to take control of bitcoin. The outlet underlined that the cryptocurrency has experienced a recent surge due to low interest rates, high debt, and a surplus of stimulus and liquidity.

India's Government Is Currently Considering A Ban On Bitcoin And Other Cryptocurrencies

Dalio's predictions appear even more feasible against the backdrop of India, which is currently considering a ban not just on bitcoin but on all cryptocurrencies.

Still, the South Asia country has faced pushback for its plans. In a piece for Bloomberg, Shruti Rajagopalan argued that a bitcoin ban would be a "terrible idea" and claimed the move would throw the country's economy into turmoil.

"A far better solution would be to streamline India’s devilishly complex tax code, broaden the tax base and make enforcement less arbitrary, thus encouraging more Indians to pay what they owe."

"A far better solution would be to streamline India’s devilishly complex tax code, broaden the tax base and make enforcement less arbitrary, thus encouraging more Indians to pay what they owe."

Dalio Says The Government Has The Ability To Track Bitcoin

Gettyimages | Dan Kitwood

Despite the anonymous nature of cryptocurrency, Dalio claimed that the U.S. government has the resources to track and ban it on a mass scale.

"Now, can they do it? Yeah," he said in his recent interview with Yahoo! Finance.

According to Dalio, America's government surveillance capabilities would be sufficient to track bitcoin — although he admitted he is not an expert on this particular issue.

Elsewhere, Rajagopalan noted that the proposed ban in India would require an "intrusive surveillance system" to track all internet activity in the country. However, she argued that India does not yet have such resources.

U.S. Regulators Have Not Indicated They Are Eyeing A Bitcoin Ban

According to Markets Insider, U.S. regulators have not indicated that they are planning to ban bitcoin. The outlet noted that the cryptocurrency has increased by approximately 650 percent over the last year and reached $51,000 on Thursday.

Nevertheless, some have called for tighter regulations on bitcoin. Notably, Joe Biden's Treasury Secretary Janet Yellen argued that stricter regulations are necessary to combat the use of cryptocurrency for illegal industries, such as terrorism and drugs.

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