Bitcoin price rediscovered its shape yesterday, up 4%. That shape continues today as buyers managed to break the $ 15.8,000 resistance.
Sustained buying pressure could see a surge above $ 16,000, a level not seen since January 2018.
Source: BTCUSDT on TradingView.com
Analysts have attributed Bitcoin’s recent renaissance to a number of factors. Perhaps most influential is the tide of interest from American companies viewing Bitcoin as an inflation hedge during uncertainty.
Ray Dalio, billionaire and founder of wealth management company Bridgewater Associates, sees it differently. He believes Bitcoin has no long-term value as governments will do whatever it takes to destroy those who oppose their fiat currencies.
Dalio predicts Bitcoin ban
Dalio has long been critical of Bitcoin and “alternative cryptocurrencies”. A few years ago, during a CNBC interview, he implied that Bitcoin was a Ponzi program that was about to collapse.
“It’s shame. It could be currency. It could work conceptually, but the amount of speculation and the lack of transactions [hurts it]. ”
While other influential figures in the financial world like Jamie Dimon have changed attitudes over time, Dalio remains steadfast in his views.
In a recent interview with Yahoo Finance this time he went into the problems of Bitcoin and “alternative cryptocurrencies”.
“A currency has to be an effective medium of exchange, a store of wealth, and governments want to control it.”
Dalio continued to expand, stating that Bitcoin was a bad medium of exchange as few outlets accept it for payment. He also points out that BTC’s volatility affects its ability to store wealth.
Worst of all, however, is the view that governments will ban Bitcoin once it gets too big.
When it becomes essential, governments will not let it. I mean, they’re going to forbid it, and they’re going to use whatever teeth they have to get that through. ”
Ray Dalio on #Bitcoin and digital currencies. (1/2) Based on the arguments @RayDalio has against BTC, I think it is very likely that he will change his mind this cycle. pic.twitter.com/VSrRGYQjJd
– Dewan (@ DHassan_77) November 8, 2020
BTC market capitalization on the rise
Although Dalio does not represent the world’s governments, his comments still have the opportunity.
As has been shown in recent months, governments, even Western democracies, have imposed draconian measures against their people.
As ridiculous as a Bitcoin ban sounds, it cannot be ruled out entirely. Especially given the competition that Bitcoin offers the central bank’s digital currencies.
In addition, Bitcoin market capitalization has grown significantly since early September. It is currently close to $ 300 billion. Not much less than its all-time high of $ 320 billion.
Source: Market Cap BTC on TradingView.com
With this we are quickly approaching a tipping point where Bitcoin could be considered too big.
How this will work is unclear. One thing is certain, however: the Bitcoin ban would be another violation of our freedoms.