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META 1 Coin Reports

META 1 Coin Report: Will Governments Try to Ban Crypto?

During a recent interview with Yahoo Finance, billionaire investor Ray Dalio said that he believes governments would eventually ban Bitcoin. By extension, one can presume he includes all cryptocurrencies in this supposed future ban. He also added that cryptocurrency volatility makes it a less favorable investment than gold. As the head of the world’s largest hedge fund, Bridgewater Associates, his words carry substantial weight and naturally caused more than a mild stir among leaders in the crypto community.

Like any worthwhile societal debate these days, a Twitter thread was started (by Moon Capital) to push back on his prediction. Moon Capital operates SatWorth, a wealth tracking dashboard. They countered Dalio’s thoughts by tweeting, “if someone is presenting this argument, they’ve conceded that Bitcoin is the world’s most valuable monetary good ever discovered. They understand that Bitcoin will become so incredibly valuable that it may threaten government itself.”

They added, “Banning Bitcoin wouldn’t kill bitcoin. You’d have to physically find every Bitcoiner and destroy their computer(s) to kill Bitcoin.”

Numerous other leaders in the crypto and finance space shared the tweet, including former hedge fund manager Raoul Pal. Pal added via Twitter, “Also, the gold ban in the 30’s meant that gold moved from the US to Switzerland, etc. Gold continued to trade globally as normal. Capital control[s] anywhere have never worked and gold has always worked. Bitcoin will be the same.”

Others also chimed in via Twitter to counter Dalio. The basic premise of these counterarguments is that Bitcoin and other cryptocurrencies have expanded substantially and are so widely used that they are beyond limitation at this point. History has demonstrated consistently that anything that is highly valued and widespread cannot be effectively banned by governments. In fact, bans tend to motivate increased adoption, similar to the widespread prevalence of speakeasy’s during Prohibition.

The best that governments can do is exert control and regulations on crypto, which they have done thus far. Digitally encrypted crypto wallets and cross border transactions will make it fairly difficult for governments to fully control crypto as they have been accustomed with traditional investments and other regulated industries.

While Dalio is generally held in high esteem for his wisdom and brilliance, this specific theory seems to be off. Cryptocurrencies like Bitcoin and META 1 Coin are undoubtedly here to stay. Governments, including the US, have even expressed interest in potentially issuing their own digital currencies. It would appear very hypocritical of them if they tried to restrict other digital coins when they are pursuing them for their nations.

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