Ray Dalio's Concerns About Bitcoin: Why This Legendary Investor's Enthusiasm for Digital Assets Falls Short of Expectations

Legendary investor Ray Dalio recently revealed in an interview with Zerodha co-founder Nikhil Kamath that, although he holds a small amount of Bitcoin, digital assets like these are far less attractive in his asset allocation compared to traditional gold. These remarks have once again sparked industry discussions about the feasibility of cryptocurrencies as a store of value.

Ray Dalio’s Core Concerns About Bitcoin

As the founder of the world’s leading investment firm Bridgewater Associates, Ray Dalio’s investment views are highly influential. He pointed out that the main issue with Bitcoin lies in its publicly transparent ledger feature. “All transactions can be tracked, and both individuals and governments can monitor these transaction flows,” Dalio explained. “Governments can even intervene in these transactions if needed.”

This stands in stark contrast to his view of gold. In Dalio’s opinion, gold is superior to Bitcoin precisely because it cannot be controlled or interfered with by governments—once you own physical gold, government influence ends.

Central Bank Adoption as an Important Indicator

Dalio mentioned that although the Czech National Bank became the first central bank to purchase Bitcoin last month, the $1 million digital asset investment is kept separate from the bank’s official reserves. This move should be seen as a sign of recognition for digital assets but also indicates cautious attitudes among central banks toward Bitcoin—they have not yet included it as part of their official reserves.

“Given these issues, it is unlikely that Bitcoin will be held at scale by central banks and many other institutions,” Dalio stated. “Although its supply is limited, there are many practical restrictions in its application.”

Dual Considerations of Security and Risks

Beyond issues of monitoring and control, Dalio also expressed concerns about the security of the Bitcoin network. He mentioned quantum risks and the possibility of protocols being cracked, though these risks remain debated within the tech community.

In contrast, gold has a history of over 6,000 years and has proven to be a reliable store of value and hedge against inflation. It does not face quantum computing risks, which is a significant advantage over emerging digital assets.

Counterarguments from Bitcoin Supporters

The Bitcoin community offers a different perspective on these criticisms. Supporters point out that Bitcoin, as the most powerful holding asset, allows users to access and transfer funds anywhere in the world at any time by simply remembering a 12-word security phrase. This portability and accessibility are unmatched by traditional gold.

Notably, since its launch in 2009, Bitcoin has maintained over 99.98% uptime for more than 16 years, achieving 100% reliability standards since 2013. The network has never experienced a successful protocol-level hacking attack, making its security record among the best in decentralized systems.

Government Intervention: History and Reality

Interestingly, Dalio’s emphasis on “gold being immune to government interference” has flaws in historical context. The U.S. government famously confiscated private gold in large quantities in 1933 through Executive Order 6102; similarly, Bitcoin has been seized in criminal investigations, including $15 billion worth of crypto assets confiscated in 2025. These examples show that no asset is entirely immune from potential government intervention.

Today, governments have developed more indirect ways of intervention—by requiring crypto companies to implement KYC/AML regulations, freezing specific accounts, and blocking transactions with sanctioned entities to achieve regulatory goals.

Conclusion

Dalio’s cautious stance as a seasoned investor reflects the ideological differences between traditional finance and emerging assets. While he is bearish on fiat currencies and holds a small amount of Bitcoin as diversification, his views also highlight the challenges that digital assets must overcome before gaining widespread recognition as reserves. The comparison between gold and Bitcoin may continue to be a significant topic in the investment community for a long time.