Ray Dalio has always remained cautious about crypto.
While he does hold a little bit of Bitcoin (BTC), he prefers to put his faith in gold.
In a recent podcast, the billionaire hedge fund founder revealed why central banks are also unlikely to embrace it.
Related: Central Bankers Criticize Bitcoin as Speculative Vehicle
While Dalio expressed skepticism about Bitcoin as a reserve asset, he was clear that his caution does not stem from confidence in government-issued money.
He reiterated that he remains bearish on fiat currencies, saying persistent debt and money printing continue to erode their value over time.
That outlook explains why he still holds some Bitcoin, even if it plays a minor role in his portfolio.
“I have a little bit of Bitcoin,” Dalio said, “but for me, it’s not as attractive as gold,” Dalio said.
During Nikhil Kamath’s WTF Podcast, released on Dec. 20, the legendary macro investor said Bitcoin’s design and structural risks make it unlikely to be widely adopted by central banks as a reserve asset, despite its fixed supply and growing perception as a form of money.
“Bitcoin is limited in supply, and it’s perceived as money, as a storehold of wealth, that is unlikely to be significantly held by central banks and many others.”
According to Dalio, one of the core issues is control and transparency. Unlike physical gold, Bitcoin transactions are recorded on a public blockchain and can be monitored.
“Governments can monitor what the transactions are. And governments can interfere with those transactions,” Dalio explained.
“Gold is the only asset that you can have that they can’t mess with and control…that’s not true of Bitcoin.”
For central banks, which prioritize assets that function reliably during crises and geopolitical stress, that distinction matters.
Dalio also pointed to technological and security risks. He raised concerns about whether Bitcoin could one day be “cracked, broken, or controlled,” comparing those uncertainties to the idea of synthetic alternatives that might undermine scarcity, similar to how synthetic diamonds exist alongside natural ones.
Dalio’s comments appear at a time when Bitcoin is experiencing increased volatility, especially over the last few months. At the time of reporting, Bitcoin was down to $87,944.77, a 0.2% drop in the past 24 hours and a 22.1% drop in the past three months, as per CoinGecko.
