Ray Dalio Points to Government Action as Bitcoin’s Biggest Long-Term Threat ByJimmy AkiPRO INVESTOR Last Updated: 06 August 2021 Ray Dalio, the founder of top hedge fund Bridgewater Associates, has completed his full heel turn concerning cryptocurrencies. However, the legendary investor also sounds a note of warning over impending government regulation. Dalio Pitches for BTC Dalio, whose hedge fund is the largest globally, published an essay outlining his opinions about Bitcoin. The billionaire explained that while he was a fan of the leading cryptocurrency, the asset’s chances of overshadowing gold faced a significant challenge in the form of excessive government regulation. Titled “What I Really Think of Bitcoin,” the article shows Dalio in his characteristically candid nature divulging his opinions on the leading digital asset. The billionaire pointed out that he was in awe of the asset’s technical development and ability to last over a decade already. “I believe Bitcoin is one hell of an invention. To have invented a new type of money via a system that is programmed into a computer and that has worked for around 10 years and is rapidly gaining popularity as both a type of money and a storehold of wealth is an amazing accomplishment.” Dalio also added that Bitcoin has already attained the same status as gold when it comes to reserve assets. In a world where reserve assets seem to be more critical, Bitcoin – as well as gold – can provide a great deal of support for those looking to hedge their wealth. Beware of Uncle Sam However, Dalio also cast doubt on Bitcoin, explaining that the government could essentially change a lot about it in the future. The billionaire pointed to the issue of privacy, in particular, saying that Bitcoin’s privacy would essentially be determined by how much the government was willing to let it stay that way. Dalio explained that the government could have a vested interest in disrupting Bitcoin use as it is an existential threat to the institutional powers. Industry leaders would want to kill the competition, and Bitcoin is currently mounting significant competition with its new offering. If the leading digital asset continues to grow in popularity, it – as well as its investors – should expect some pushback. There are already signs that the Biden administration hopes to take crypto successfully. Incoming Treasury Secretary Janet Yellen has made several comments about digital assets already, including pointing out their benefit to the financial system and the dangers of crypto-assisted illegal activity. Everyone seems to agree that the next four years will be pivotal from a regulatory standpoint.