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Dalio sees 'good probability' bitcoin gets outlawed


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https://www.msn.com/en-us/money/markets/dalio-sees-good-probability-bitcoin-gets-outlawed/ar-BB1eUImm?ocid=msedgntp

Billionaire investor Ray Dalio, the founder of the $150 billion hedge fund Bridgewater Associates — the world’s largest — made a case that there’s a “good probability” bitcoin could be outlawed, similar to when the U.S. government made it illegal to privately own gold.

As Dalio points out in his upcoming book “The Changing World Order,” the Gold Reserve Act of 1934 made it illegal for individuals to own gold “because government leaders didn’t want gold to compete with money and credit as a storehold of wealth.” Something similar could happen with bitcoin, which has surged against a backdrop of high levels of debt, low interest rates, a lot of liquidity and stimulus, and investors seeking alternatives to bonds and currencies. At the time of this writing, bitcoin’s price was near $56,559.98, spiking after Elon Musk tweeted that you can use it to buy Teslas (TSLA).

“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. 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 told Yahoo Finance Editor-in-Chief Andy Serwer in an episode of “Influencers with Andy Serwer,” a weekly interview series with leaders in business, politics, and entertainment.

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What society allowed of governments in 1934, and what it will allow now, are two completely different things.  There's no way they could get away with outlawing gold ownership now.  It's simply too late to outlaw bitcoin.  If they wanted to do it, it needed to be done years ago.  Cat's already out of the bag (sorry to bring up an old Brad quote :scratch_one-s_head:).    

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5 hours ago, Alluvial said:

What society allowed of governments in 1934, and what it will allow now, are two completely different things.  There's no way they could get away with outlawing gold ownership now.  It's simply too late to outlaw bitcoin.  If they wanted to do it, it needed to be done years ago.  Cat's already out of the bag (sorry to bring up an old Brad quote :scratch_one-s_head:).    

I disagree.  The US govt can certainly close down the on and off ramps for US citizens however there is huge risk in massive capital flight that would dwarf anything we've ever seen.  Also, this very act would demonstrate incredible weakness in terms of the values that the US was established by and for whether you agree with them or not.  

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Wait till Buttcoin gets dumped back down 80% again like it has over and over and then we will see who howls last. Same thing happened to XRP and Ripple got sued. The fat lady is Janet Yellen and she has not done very little  singing yet.https://www.cnbc.com/2021/02/22/yellen-sounds-warning-about-extremely-inefficient-bitcoin.html

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Treasury Secretary Janet Yellen issued a warning Monday about the dangers that bitcoin poses both to investors and the public.

Despite a sharp slide in price to start the week, the cryptocurrency continues to trade above $53,000 as it has received boosts from various sources. Elon Musk’s Tesla recently made a substantial purchase and has said it will accept bitcoin for transactions.

However, Yellen said there remain important questions about legitimacy and stability.

“I don’t think that bitcoin … is widely used as a transaction mechanism,” she told CNBC’s Andrew Ross Sorkin at a New York Times DealBook conference. “To the extent it is used I fear it’s often for illicit finance. It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.”

Mining bitcoin requires users to solve complex mathematical equations using high-powered computer setups. The electric consumption used in the process leaves an annual carbon footprint equal to the nation of New Zealand, according to Digiconomist.

In addition to consumption concerns, bitcoin also is considered to be a tool of those involved in a number of illegal activities because its use is difficult to trace.

Then there’s volatility, as the cryptocurrency’s price has seen rapid peaks and valleys during its existence.

“It is a highly speculative asset and you know I think people should be aware it can be extremely volatile and I do worry about potential losses that investors can suffer,” Yellen said.

 

 

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7 hours ago, Sporticus said:

Wait till Buttcoin gets dumped back down 80% again like it has over and over and then we will see who howls last. Same thing happened to XRP and Ripple got sued. The fat lady is Janet Yellen and she has not done very little  singing yet.https://www.cnbc.com/2021/02/22/yellen-sounds-warning-about-extremely-inefficient-bitcoin.html

 

She’s not saying anything new for anyone who knows even just a little bit about crypto. 

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