Ray Dalio of Bridgewater warns government could restrict Bitcoin investments and impose ‘shocking’ taxes – Bitcoin News

The founder and chief investment officer of Bridgewater Associates, the world’s largest hedge fund company, warned the government could “ban the movement of capital” in assets such as bitcoin. He added that regulators can also impose tax changes that “could be more shocking than expected.”

Ray Dalio warns of government bans and taxes

Ray Dalio, Founder and Chief Investment Officer of Bridgewater Associates, wrote an article on Linkedin last week titled: “Why in the World Would You Hold Bonds When …”

He pointed out that bond markets currently offer “ridiculously low yields”, which “do not meet the funding needs of these asset holders”. The executive wrote: “There are now over $ 75 trillion in US debt assets of various maturities,” adding that their holders will at some point want to sell them to get money to buy property and services.

However, the Chief Investment Officer of Bridgewater believes that “at current valuations there is far too much money in these financial assets for it to be realistic to expect that any significant percentage of this bond money can be made. turned into cash and exchanged for goods and services. He explained, “You have to adapt it … by printing a lot of money and devaluing it, and restructuring a lot of debt and public finances, usually including big tax increases.”

Dalio explained, “Based on both how things have worked historically and what is happening now, I am confident that tax changes will also play an important role in driving capital flows to different assets. investment and different locations, and these movements will influence market movements. “

The billionaire fund manager pointed out that “if history and logic are to be any guide, cash-strapped policymakers will raise taxes and dislike these movements of capital out of debt assets and into debt. other wealth asset reserves and other tax areas, “Attention:

They could very well impose bans on the movement of capital to other assets (e.g. gold, bitcoin, etc.) and other locations. These tax changes could be more shocking than expected.

The founder of Bridgewater Associates used the wealth tax proposed by Elizabeth Warren as an example, saying it “is on an unprecedented scale”. Citing his study on “wealth taxes in other countries at other times”, he expects this proposal “to very likely lead to more capital outflows and other measures to evade these taxes ”.

Therefore, “the United States could be seen as an inhospitable place for capitalism and capitalists,” said Dalio, noting that “the chances that a major wealth tax bill will be passed in the course of the next few years are important. In conclusion, the Bridgewater executive cautioned:

You have to be aware of tax changes and the possibility of capital controls.

Dalio has been studying bitcoin for the past few months. In November of last year, he admitted that he might be wrong about bitcoin, but was concerned nonetheless that governments were banning cryptocurrency. In December, he said bitcoin could “serve as a diversifier for gold and other such wealth assets.” Then, in January of this year, he declared that “bitcoin is a hell of a invention,” revealing that his company was taking a close look at cryptocurrency.

What do you think of Ray Dalio’s warning? Let us know in the comments section below.

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