Ray Dalio said he would prefer to own Bitcoin (BTC) rather than bonds. However, he also stated that there are various obstacles to cryptocurrencies. In a recent Bloomberg interview, the founder of Bridgewater Associates said that problems could arise if people start to prefer cryptocurrencies over traditional assets.

He stated that the most significant risk of Bitcoin is its success, and as it becomes more of a threat when people want to sell their bonds and buy Bitcoin, more transactions will appear. There is a possibility that it will lose control, which is an existential risk. He says that when people see Bitcoin as a better store of value, the government may perceive it as a threat.

“The more income you get from here, the more you can prefer Bitcoin to bonds. I prefer Bitcoin over a bond. The more this happens, the more Bitcoin can be compromised. Control of this can be lost, and that is a risk.”

Ray Dalio

Ray Dalio previously warned that the US could ban Bitcoin as people seek an alternative to bonds and currencies during the global financial crisis. In addition, Dalio drew attention to the Gold Reserve Act, which was enacted to prevent gold from competing with the US dollar. In March, Dalio said that the US government could impose higher taxes on Bitcoin and gold to prevent investors from moving their capital from debt assets.