Ray Dalio, the billionaire investor and founder of Bridgewater Associates, has questioned whether Bitcoin can serve as a long-term store of value, arguing that it lacks key characteristics needed to function as a safe-haven asset.
Speaking on the All-In Podcast on Tuesday, Dalio rejected the idea that Bitcoin could replace gold as a form of “digital gold.”
“There is only one gold,” Dalio said, describing gold as the most established form of money and the second-largest reserve asset held by central banks.
Dalio questions Bitcoin’s role in central bank reserves
Dalio said he does not see central banks adopting Bitcoin as a long-term reserve asset. He explained that market conditions will influence how investors buy and sell the cryptocurrency because of its supply and demand patterns.
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He showed that Bitcoin price movements show a relationship with technology stocks, which makes its price patterns different from those of typical safe-haven assets.
Concerns about privacy and future risks
Dalio also raised concerns about Bitcoin’s transparency, noting that transactions on the network can be tracked. He added that advances in quantum computing could potentially create risks for the network in the future.
Despite his skepticism, Dalio has previously acknowledged Bitcoin’s role as a form of “hard money.” In July, he suggested investors consider allocating about 15% of a portfolio to either Bitcoin or gold to achieve a favorable return-to-risk balance.
Gold’s strength compared with Bitcoin
Since October, Bitcoin has fallen more than 45% from its peak, while gold prices have continued to rise.
Dalio has established his belief that gold functions as the most dependable method to store value during times of economic uncertainty, which occur when debt increases and currency values decline.
He announced that worldwide financial system will undergo major changes because he told investors that the US-led global order, which has persisted for decades, is beginning to break down, and they must create new strategies to protect their wealth.
