Billionaire investor Ray Dalio has warned that Bitcoin is unlikely to serve as a dependable long-term store of value or safe haven, citing its limited central bank support, privacy shortcomings and vulnerability to future quantum computing threats.
Speaking on the All-In Podcast, Dalio rejected the idea of Bitcoin as “digital gold,” saying, “there is only one gold.” He argued gold is the “most established money” and remains the second-largest reserve asset held by central banks, and said he does not see why central banks would want to buy and hold Bitcoin over the long term.
Dalio has acknowledged Bitcoin’s hard-money attributes in the past and noted its high correlation with technology stocks. He warned that ownership dynamics — for example, forced selling in one area — can affect supply and demand across assets: “So, from an ownership perspective, supply and demand can be affected if somebody gets squeezed in one area and has to sell something else they hold.”
He also raised privacy concerns, observing that “any transaction can be monitored,” and cautioned that advances in quantum computing could pose security risks to the network.
In July, Dalio suggested that investors consider a roughly 15% allocation to Bitcoin or gold as part of a portfolio aimed at optimizing the return-to-risk ratio amid concerns about U.S. national debt and currency debasement. Between July and early October, both Bitcoin and gold rose, but a broader crypto market crash eliminated nearly $20 billion in leveraged positions and the assets later diverged.
Since its October peak, Bitcoin has fallen more than 45% to around $68,420, while gold has continued to climb, rising roughly 30% to about $5,120 in the same period.
Dalio has also warned that the “World Order” dominated by the U.S. has broken down, urging investors to rethink how they protect wealth amid growing geopolitical tensions and economic disorder. He reiterated that stores of value—particularly gold—remain his preferred hedge when currencies deteriorate and credit systems are strained, as debt assets become more vulnerable in uncertain times.
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