Ray Dalio, the billionaire investor and founder of Bridgewater Associates, warns that there is a high probability that governments will move to ban Bitcoin.

Bitcoin threatens government monopoly on money:

The end of 2020 witnessed Dalio’s controversial statement about Bitcoin, which he described as a weak trading medium and its high volatility reduces the value of its use.

I might be missing something about Bitcoin, so I’d like it to be corrected. My Problems With Bitcoin As A Simple Effective Currency… (1/5)

– Ray Dalio (@RayDalio) November 17, 2020

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A few weeks ago, Dalio published an article explaining his stance on Bitcoin, in which he noted that after analyzing Bitcoin further, he is now a huge fan of it.

The sticking point for Dalio has always been the possibility of governments shutting down bitcoin.

In a recent interview with “Yahoo Economic”Dalio repeated the point, referring to the government’s control of the money supply.

Dalio stated:

The authorities are able to take the next logical step of eliminating competition, as each country monopolizes its control over the supply and demand of money.

They don’t want other money to work or compete, because things can get out of hand.

So I think it’s very likely that Bitcoin will get trapped or be cornered to do the work of gold.

To back up his statements, Dalio used an example of what is happening in India nowadays, where under the proposed legislation, the possession, issuance, mining, trading and transfer of cryptocurrencies would be criminalized.

For your information, Indian Finance Minister Nirmala Sitharaman stated that the government has no intention of closing the door to cryptocurrencies entirely.

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Government regulation and cryptocurrency investors:

The Financial Action Task Force (FATF) published its latest cryptocurrency guidance last week.

Peter Van Valkenburg, director of research at Coin Center, criticized the changes as non-judicial mass surveillance.

He drew attention to changes to the monitoring obligations of crypto exchanges, cracking down on privacy and P2P transactions.

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All digital currency service providers (VASPs) and financial institutions are also required to maintain identifying information on all transacting parties.

Van Valkenburg fears the proposed changes would stifle crypto-currency innovation and frighten privacy-conscious investors.

In conclusion, given that governments did not eliminate Bitcoin in its early days when its infrastructure was small, but now with the expansion of its use and the interest of large-name institutions towards it, it is difficult as it was to ban Bitcoin and the task will be almost impossible day after day.

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