Advertisement
AD

Main navigation

Billionaire Ray Dalio Says Government Could Prohibit Capital Flows to Bitcoin

Advertisement
Tue, 16/03/2021 - 6:28
A
A
A
Billionaire Ray Dalio Says Government Could Prohibit Capital Flows to Bitcoin
Cover image via www.wikipedia.org
Read U.TODAY on
Google News
Advertisement

In his LinkedIn post, Bridgewater Associates founder Ray Dalio writes that the U.S. government could prohibit capital movements into Bitcoin, the largest cryptocurrency, as well as gold.

He suggests that “shocking” tax hikes could be deployed to manipulate flows into various asset classes:

If history and logic are to be a guide, policy makers who are short of money will raise taxes and won’t like these capital movements out of debt assets and into other storehold 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.

Cash is still trash

In an apparent nod to Bitcoin, however, Dalio is urging investors to put their money in a “well-diversified” portfolio of higher-returning assets by borrowing dollars.

Advertisement

The billionaire continues to stand by his opinion that cash is trash, urging his readers against holding it.

 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.

Dalio predicts that the U.S. could become “inhospitable” for capitalists.

Related

The obvious solution

In response to Dalio’s most recent post, MicroStrategy CEO Michael Saylor commented that Bitcoin was the “obvious solution” to the bond problem, claiming that it is more “practical” than a diversified portfolio. 

Even though the head of the world’s largest hedge fund was a Bitcoin skeptic in the past, he eventually changed his tune on the flagship cryptocurrency.

As reported by U.Today, admitted that Bitcoin is “a good storehold of wealth,” praising its resilience this January. 

Bridgewater itself could dabble into Bitcoin, according to a recent interview with Rebecca Patterson, the firm’s director of investment research. 

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

A
A
A

Related articles

Advertisement
TopCryptoNewsinYourMailboxSubscribe
TopCryptoNewsinYourMailboxSubscribe
Advertisement
Advertisement
Subscribe to daily newsletter

Recommended articles

Latest Press Releases

Our social media
There's a lot to see there, too

Popular articles

Advertisement
AD