bridgewater associates, bridgewater associates bitcoin, capital control, fund manager, Government, government prohibition, Ray Dalio, Ray Dalio bitcoin, restrictions, Taxation

The founder and chief investment officer of Bridgewater Associates, the world’s largest hedge fund firm, has warned that the government could “impose prohibitions against capital movements†into assets such as bitcoin. He added that regulators may also impose changes in taxes that “could be more shocking than expected.â€

Ray Dalio Warns About Government Prohibitions and Taxes

Ray Dalio, founder and chief investment officer of Bridgewater Associates, wrote a post on Linkedin last week entitled: “Why in the World Would You Own Bonds When…â€

He pointed out that the bond markets currently offer “ridiculously low yields,†which “do not meet these asset holders’ funding needs.†The executive wrote, “There is now over $75 trillion of US debt assets of varying maturities,†adding that their holders will at some point want to sell them to get cash to buy goods and services with.

However, Bridgewater’s chief investment officer estimates that “at current valuations, there is way too much money in these financial assets for it to be a realistic expectation that any significant percentage of that bond money can be turned into cash and exchanged for goods and services.†He elaborated: “It has to be accommodated … via printing a lot of money and devaluing it, and restructuring a lot of debt and government finances, usually including large increases in taxes.â€

Dalio explained: “Based both on 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 investment assets and different locations, and those movements will influence market movements.â€

The billionaire fund manager emphasized that “If history and logic are to be a guide, policymakers who are short of money will raise taxes and won’t like these capital movements out of debt assets and into other storehold of wealth assets and other tax domains,†warning:

The Bridgewater Associates founder used Elizabeth Warren’s proposed wealth tax as an example, stating that it “is of an unprecedented size.†Citing his study of “wealth taxes in other countries at other times,†he expects this proposal “will most likely lead to more capital outflows and other moves to evade these taxes.â€

Consequently, “The United States could become perceived as a place that is inhospitable to capitalism and capitalists,†Dalio opined, emphasizing that “the chances of a sizable wealth tax bill passing over the next few years are significant.†In conclusion, the Bridgewater executive cautioned:

Dalio has been studying bitcoin over the recent months. In November last year, he admitted that he may be wrong about bitcoin but was nonetheless worried about governments outlawing cryptocurrency. In December, he said bitcoin could “serve as a diversifier to gold and other such storehold of wealth assets.†Then, in January this year, he said that “bitcoin is one hell of an invention,†revealing that his firm looking closely at the cryptocurrency.

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

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Du lịch nhật bản, hướng dẫn du lịch Nhật và đánh giá địa điểm Nhật Bản Japan travel news, japan travel guides, japan holiday destinations and japan reviews

RELATED NEWS

Goldman Sachs Survey: Chief Investment Officers Say Bitcoin Is Their Least Favorite Investment

Investment bank Goldman Sachs recently held two roundtable sessions for chief investment officers of hedge funds. The bank found that they see bitcoin as their least favorite investment. In contrast, the latest Bank of America Fund Manager Survey found that “long bitcoin†was the most crowded trade. CIOs Reveal Their Most and Least Favorite Investments […]

Xem chi tiết: Goldman Sachs Survey: Chief Investment Officers Say Bitcoin Is Their Least Favorite Investment

Government Cannot Stand in the Way of Crypto Technologies, Iran Minister Says

New technologies, including blockchain and cryptocurrency mining, have helped Iran to increase budget receipts and withstand foreign sanctions, according to the country’s minister for economy and finance. The high-ranking official believes the government can’t interfere with their development for too long. Government Official Cautions Against Impeding Crypto Development Over the past few years, Tehran has […]

Xem chi tiết: Government Cannot Stand in the Way of Crypto Technologies, Iran Minister Says

South Korean Financial Supervisory Service Tasked With Crypto Market Oversight

The Financial Supervisory Service of South Korea will lead government efforts to oversee the country’s expanding cryptocurrency market. The agency has been tasked with the job after prolonged discussions over which Korean regulator should be responsible for the industry. Financial Supervisory Service Takes Responsibility for Crypto Sector in Korea It took the government months to […]

Xem chi tiết: South Korean Financial Supervisory Service Tasked With Crypto Market Oversight

Brazilians Who Held $1,000 in Crypto Last Year Must Report It on Tax Returns by End of May

Taxpayers in Brazil have only a couple of days left to file their annual tax returns. Investors who had more than 5,000 reals worth of cryptocurrency in 2020, a little less than $1,000, are obliged to report the funds on their income tax declarations this year. Brazilians who fail to do that on time face […]

Xem chi tiết: Brazilians Who Held $1,000 in Crypto Last Year Must Report It on Tax Returns by End of May

Ray Dalio Buys Bitcoin Despite Saying Governments May Ban Cryptocurrencies

Bridgewater Associates founder Ray Dalio has revealed that he owns bitcoin despite concerns he has long voiced about governments interfering and even outlawing cryptocurrencies. The boss of the world’s largest hedge fund said “bitcoin’s greatest risk is its success.†Ray Dalio Got Bitcoin Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, […]

Xem chi tiết: Ray Dalio Buys Bitcoin Despite Saying Governments May Ban Cryptocurrencies

Ray Dalio Buys Bitcoin Despite Saying Governments May Ban Cryptocurrencies

Bridgewater Associates founder Ray Dalio has revealed that he owns bitcoin despite concerns he has long voiced about governments interfering and even outlawing cryptocurrencies. The boss of the world’s largest hedge fund said “bitcoin’s greatest risk is its success.†Ray Dalio Got Bitcoin Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, […]

Xem chi tiết: Ray Dalio Buys Bitcoin Despite Saying Governments May Ban Cryptocurrencies

Ray Dalio Buys Bitcoin Despite Saying Governments May Ban Cryptocurrencies

Bridgewater Associates founder Ray Dalio has revealed that he owns bitcoin despite concerns he has long voiced about governments interfering and even outlawing cryptocurrencies. The boss of the world’s largest hedge fund said “bitcoin’s greatest risk is its success.†Ray Dalio Got Bitcoin Ray Dalio, the founder of the world’s largest hedge fund, Bridgewater Associates, […]

Xem chi tiết: Ray Dalio Buys Bitcoin Despite Saying Governments May Ban Cryptocurrencies

Elon Musk Invented Bitcoin, if You Ask Half of Australians Polled by Finder

Australians have been learning more and more about cryptocurrencies but it turns out some myths and misconceptions are still widespread among the general public Down Under. As a most stunning example, over half of the participants in a new poll by Finder believe Elon Musk invented the first crypto network, Bitcoin. Finder Tests Australians With […]

Xem chi tiết: Elon Musk Invented Bitcoin, if You Ask Half of Australians Polled by Finder

Hungary to Cut Tax on Crypto Profits in Half, Down to 15%

Hungary to Cut Tax on Crypto Profits in Half, Down to 15%

Vietnam Plans to Regulate Digital Currencies After Commissioning a Crypto Research Group

Young Koreans Less Keen on Crypto Taxation Than Older Generations, Poll Finds

OFAC Escalates Russian Sanctions Listing Bitcoin Addresses, US Treasury Crypto Crackdown Rumors Spread

With US Tax Season Around the Corner, Here’s How to Report Crypto Activity to the IRS

With US Tax Season Around the Corner, Here’s How to Report Crypto Activity to the IRS

Spanish Island Government Decides to Sell Its Bitcoin Investment by Citing ‘Ethical’ Reasons

Other Articles