Dalio is a star in the crypto world; that’s why he commented: Governments are not capable of banning Bitcoin.
Ray Dalio is the founder and co-chair of Bridgewater Associates, the world’s largest hedge fund. His newest book, “Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail,” delves into the failure of the fiat (fiat, physical) monetary system and a future when the United States and the US dollar lost their power.
Summary of the book:
In March 2020, the world witnessed one of the biggest stock market crashes in history. In just 4 trading days, Dow Jones fell 6,400 points or about 26%. Shortly after the Federal Reserve announced asset purchases on March 23, it took less than five months for the S&P 500 to rally to new closing highs — the fastest recovery from a bear market bottom to a new historic high. What does all of this mean?
This is another book by Ray Dalio, published right before the stock market crash in 2020. It predicts what financial markets and governments can and will do, supported by repeat historical events.
Dalio has extensively researched the historical debt cycles of different countries and how they contributed to the rise and fall of empires. Surprisingly, history has been repeating itself. By understanding how the factors of financial markets work, you will be better prepared when opportunities come. Since the Government completely controls the Fiat currency system, personal financial management becomes essential.
History has shown that we should not rely on Governments to protect our finances. On the contrary, we should expect most governments to abuse their privileged position as the creator and user of money.
This topic has made Dalio a star in cryptocurrency, so his recent comments about governments’ inability to ban Bitcoin. Dalio knows his stuff and has an established preference for gold.
BITCOIN in Vietnamese law
From 1933 to 1975, the United States made it illegal for citizens to own more than one amount of gold to prevent gold hoarding. It was done to push people more and more towards paper dollars because, at the time, it was losing purchasing power.
The law was difficult to enforce back then, and only a few people owning gold were prosecuted. It is also an example of why the situation should not repeat. The dollar was not tied to Bitcoin like gold when the ban was introduced.
Next, the cost of resources and time to add Bitcoin to the growing list of banned goods like weapons, drugs, etc., would be huge and wasteful. And if the “war on Bitcoin” has the same degree of failure as the “war on drugs” or the “war on terror”, then Bitcoin will become a part of society even if there is a war against it or not.
If the Government bans weapons or drugs, these physical products must be destroyed or expropriated. But what about Bitcoin in particular and cryptocurrencies in general?
Another reason making the battle over Bitcoin so much more difficult is because it does not exist in a physical form, and it is impossible to confiscate property.
Lawyer Truong Thanh Duc, Vietnam International Arbitration Center: Vietnam Law Can’t Ban Bitcoin!
No one controls Bitcoin, so governments’ only chance to stop the rapidly expanding cryptocurrency network is to ban citizens from owning it. But as gold has proven, it doesn’t work. In addition, time is running out if, by any chance, there are more large companies like Square, MicroStrategy, and hedge fund managers in which the world’s billionaires have invested their capital.
Billionaires, millionaires, and corporations have considerable lobbying power. If companies continue to get Bitcoin, and the market cap rises to several billion dollars or more, the impact of the government ban will be too great to warrant that.
Governments won’t ban Bitcoin, and even if they do, there is simply nothing that can stop it.