Investor Ray Dalio warned that the United States and other countries may “impose a ban on Bitcoin (BTC)” as part of the “shocking” tax changes.
In his latest LinkedIn post, Dalio – his recent move to Bitcoin as an investment opportunity – has laid a solid future for US investors.
Dalio: Be prepared for “shocking” tax changes
With the onset of the coronavirus pandemic, bonds are no longer superfluous to maintain wealth. In an effort to recover some of the hefty amounts of debt that result, the United States government plans to raise taxes – and the consequences could be much worse than many people think.
This, according to Dalio, would be a “new paradigm.”
“If history and logic were used as evidence, policymakers who lack money would increase taxes, and they would not like this capital shifting from debt to another stock of rich assets and other tax areas, so they might do so. Well, force the movement of capital into assets. Other (for example, gold, bitcoins, etc.) and elsewhere. ”
“These tax changes may be more shocking than expected.”
As a result, the environment for those with savings will eventually become less attractive than ever.
According to Dalio, the US has become “inhospitable to capitalism,” and investors should use a “well-diversified portfolio of non-credit and non-dollar assets, along with a short cash position,” to hedge the consequences.
Sailor Calls Bitcoin a “Clear Solution”
However, Michael Sailor, CEO of MicroStrategy, replied that Bitcoin is the answer.
“I agree with (Dalio) that bonds no longer work like stocks,” he wrote on Twitter.
Regards, Bitcoin is a much more convenient and straightforward solution than a “well diversified portfolio of non-credit and non-dollar assets” in “emerging Asian markets. “” ”
MicroStrategy continues to consolidate its position in BTC, announcing a $ 15 million acquisition for $ 260 million last week. The company has a total of 91,064 BTC.
Dalio himself significantly changed his stance on Bitcoin and admitted that his concerns were based on ignorance of how the cryptocurrency works.
His view is in line with Arthur Hayes, the former CEO of the derivative giant BitMEX, who, in a separate post, asked investors to take long positions in cryptocurrency and interest rate fluctuations.
“I also think you need to know about tax changes and have the ability to control capital,” Dalio concluded.