Summary: Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund, reiterated his warning that the government may ban Bitcoin. Trying to timing the market is a stupid thing, similar to defeating Usain Bolt in a sprint or Michael Phelps in the pool.
According to the news, Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund, reiterated his warning that the government may ban Bitcoin.
In an interview with Investor’s Podcast Network this week, Ray Dalio talked about Bitcoin, saying that Bitcoin has not been hacked and that it has only faced moderate market competition in the past ten years, which left a deep impression on him. But Dalio warned that there are “regulatory issues” surrounding Bitcoin. He explained: “When you have an alternative currency, it is a threat to every government. Every government wants to monopolize its currency, especially if You have a better currency (because it is not easy to depreciate). Historically, they (the government) have banned gold, silver, etc., and they can ban Bitcoin.”
Nevertheless, Dalio admitted that a small amount of Bitcoin in his portfolio is used for diversification, saying: “I am a diversification practitioner.”
Another legendary investor, Bill Miller, once suggested that people should hold about 1% to 2% of Bitcoin in their portfolios. Dalio commented on this: “I think this is correct.” But the 72-year-old billionaire said that he does not believe that Bitcoin will replace gold as some people have suggested, nor that the price of BTC can reach very high figures such as $1 million.
In contrast, Bitcoin’s number one fan and Microstrategy CEO Michael Saylor has repeatedly stated that Bitcoin will replace gold. The executive also boldly predicted that the price of BTC will reach $6 million.
Seizing the market opportunity is “harder than competing in the Olympics”
The Fed’s hawkish remarks about raising interest rates as soon as March have put heavy pressure on the cryptocurrency market.
Data from the push terminal shows that since January 1st, Bitcoin has fallen by about 11%, from about $47,700 at the beginning of 2022 to Thursday’s intraday low of about $42,560, which is nearly $69,000 from November last year. Its all-time high has fallen by about 35% . As of press time, the cryptocurrency fear and greed index has dropped to 15-extreme fear, reaching its lowest level since July 2021.
Warren Buffett once said: “Be fearful when others are greedy, and be greedy when others are fearful.” This sentence is also used by many people to invest in the crypto market, and many traders think this is a good time to increase positions. Mike Novogratz, CEO of Galaxy Digital Holdings, stated on CNBC’s “Squawk Box” program that institutional investors will start buying cryptocurrencies during the 2022 sell-off period, and the recent decline may be a potential buying opportunity.
However, Ray Dalio said that trying to seize the market opportunity is a stupid thing, similar to defeating Usain Bolt in a sprint or Michael Phelps in the pool. He said in an interview: “Don’t try to time the market by yourself, because you may lose. Competing in the market is more difficult than competing in the Olympics-there are more people trying to do this and putting in more chips.”
Ray Dalio believes that most people simply do not have the ability to predict which assets will rise and which will fall and invest accordingly. Bridgewater spends “hundreds of millions of dollars” every year trying to gain an advantage, so retail investors are very likely to fail their bets. .
Dalio has always supported investors to adopt a diversified global investment approach. In an interview, Dalio reiterated his warning about holding cash and bonds, citing the recent surge in debt and money supply in the United States. He said: “If you buy a bond, you lock in a negative actual return. Cash is worse than that. Please don’t look at your nominal return and think that it is safe. In fact, it is not safe.”
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/dalio-the-government-may-ban-bitcoin-from-seizing-market-opportunities-more-difficult-than-competing-in-the-olympics/
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