Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, believes that if bitcoin is “really successful,” the regulators will “kill it,” reiterating his previous concerns of governments banning cryptocurrencies. Nonetheless, he sees bitcoin as a good alternative to cash and owns some.

Billionaire Hedge Fund Manager Ray Dalio Warns of Regulators Killing Bitcoin

Ray Dalio warns about regulators coming after bitcoin if the cryptocurrency gains mainstream success at the SALT conference in New York Wednesday.

Dalio currently serves as Bridgewater Associates’ chairman and co-chief investment officer. His firm’s clients include endowments, governments, foundations, pensions, and sovereign wealth funds. Referring to bitcoin, the Bridgewater boss said:

I think at the end of the day if it’s really successful, they will kill it, and they will try to kill it. I think they will kill it because they have ways of killing it.

This was not the first time Dalio warned about governments killing bitcoin. While he did not elaborate on how the regulators will kill the cryptocurrency, he said in May that they could impose tough regulation on the crypto market. He also said several times that governments could also ban or outlaw bitcoin.

Regulators worldwide have been increasing efforts to regulate cryptocurrency, including the U.S., where Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), has been asking for more funds to increase oversight of the crypto sector.

Other countries actively trying to regulate crypto include India, which is working on a cryptocurrency bill; China, which has been cracking down on crypto activities; and South Korea, where new crypto law will go into effect on Sept. 24. Meanwhile, El Salvador has made bitcoin legal tender alongside the U.S. dollar. Dalio described:

You have El Salvador taking it on and you have India and China getting rid of it. And you have the United States talking about how to regulate it and it could still be controlled.

Dalio explained that bitcoin does not have intrinsic value, meaning it lacks fundamental and objective worth. He opined: “There are so many things in a historical perspective that didn’t have intrinsic value and had perceived value. And then it went hot and it became cold. It could be either way. You just have to know what it is. It could be tulips in Holland.”

Nonetheless, the billionaire investor owns a small amount of bitcoin, seeing it as a good alternative to cash. The Bridgewater chief said:

I think it’s worth considering all the alternatives to cash and all the alternatives to the other financial assets. Bitcoin is a possibility. I have a certain amount of money in bitcoin … It’s an amazing accomplishment to have brought it from where that programming occurred to where it is through the test of time.

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