Will Bitcoin Be Banned Like Gold Once Was In The US? Ark Invest And Cathie Wood Weigh In

Ark Invest held its monthly investor webinar on April 13. Among the topics discussed was Bitcoin and whether the cryptocurrency could ever get banned.

What Happened: Ray Dalio recently stated there is a good probability that Bitcoin gets outlawed. The Ark Invest team was asked about their thoughts on this comment.

“The very fact that Bitcoin is now being acknowledged as a threat to monetary sovereignty” is a change of tune, Ark analyst Yassine Elmandjra said.

The increase in concern is validation of how profound in innovation Bitcoin is, Elmandjra added.

“We’re well aware of the potential for governments to ban Bitcoin.” Countries like India and Nigeria have banned the cryptocurrency.

Gold Ban: Gold was banned in the U.S. and that was a comparison Elmandjra shared about Bitcoin.

From 1933 to the mid-1970s it was illegal for Americans to own gold. The decision was made out of national security for fear of hoarding and the American dollar being backed by gold.

“No such backing exists for gold or Bitcoin,” Elmandjra said.

Penalties for owning gold were severe, but few people were ever prosecuted.

There is less of a reason to ban Bitcoin and it would be incredibly hard to do with private keys, Elmandjra added.

“It seems unlikely that the U.S., Japan or Europe will outright ban it.”

Cathie Wood on Bitcoin: Cathie Wood, the CEO of Ark Invest, highlighted the new SEC Chairman Gary Gensler who is likely to be approved this week.

“He is a very tough regulator but he is a big Bitcoin believer,” Wood said.

Treasury Secretary Janet Yellen has made some unfriendly comments about Bitcoin, Wood said. The Ark Invest CEO added Yellen is regurgitating many of the common myths about Bitcoin.

“She clearly hasn’t done the work.”

Gensler taught classes on Bitcoin at MIT, which Wood said shows he is knowledgeable about the cryptocurrency.

(Photo: Aleksi Räisä via Unsplash)

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