Hedge-fund billionaire Ray Dalio says regulators will 'kill' bitcoin if it gets too successful

• If bitcoin is successful, the US government 'will try to kill it,' hedge fund heavyweight Ray Dalio said Wednesday on CNBC.
• Dalio has previously said the government doesn't want alternative currencies challenging the dominance of the US dollar.
• The SEC chief on Tuesday said the agency is working on rules to bolster oversight of the crypto market.

Ray Dalio, founder of Bridgewater Associates, said on CNBC he foresees regulators taking control of bitcoin if there's mainstream success for the cryptocurrency.

"I think at the end of the day if it's really successful ... they will try to kill it. And I think they will kill it because they have ways of killing it," Dalio said on CNBC during the SALT conference in New York.

His comments come as US regulators aim to increase oversight on the cryptocurrency market that has boomed to more than $2 trillion in total value this year as more retail and institutional investors participate.

Securities and Exchange Commission Chairman Gary Gensler told lawmakers on Tuesday that his agency is crafting rules to bolster regulation of the volatile digital-assets market to provide better protection for investors.

Dalio has previously raised concerns about potential government action against bitcoin. He said in March the government could ban bitcoin altogether if it becomes too successful, suggesting policymakers would want to clamp down on alternative currencies that could challenge the US dollar's dominance.

Bitcoin earlier this year surpassed valuation of $1 trillion as financial institutions such as banks increase exposure to the market through crypto purchases or blockchain projects. The world's most traded cryptocurrency was trading around $47,000 on Wednesday.

Dalio said bitcoin lacks fundamental and objective worth, or intrinsic value, but he does think it's a good alternative to cash. He owns a smaller percentage of bitcoin compared with his gold exposure in the portfolio, according to CNBC.