Billionaire investor Ray Dalio has once again argued that Bitcoin does not function as a reliable safe-haven asset, drawing sharp reactions from crypto industry leaders. The Bridgewater Associates founder laid out multiple critiques, starting with Bitcoin’s lack of privacy. "Transactions can be monitored and potentially controlled, which is why central banks aren’t looking to hold it," Dalio wrote in a social media post, emphasizing that this transparency makes Bitcoin an unattractive reserve asset for central banks.
Dalio also highlighted Bitcoin’s persistent correlation with technology stocks, particularly the Nasdaq. During market stress, investors often liquidate crypto positions to cover losses elsewhere, undermining its diversification appeal. He added that Bitcoin is a relatively small and controllable market compared to gold. "There is only one gold. Ultimately, gold is more widely held, deeply established, and still plays a central role in the global system," Dalio stated.
In defense of Bitcoin, MicroStrategy founder Michael Saylor countered that its transparency is a "feature, not a bug" that qualifies it as global collateral. Bitcoin financial services firm River also argued that the asset serves as a safe haven against central bank inflation, something traditional gold cannot easily facilitate for daily or cross-border payments. David Lawant noted that Bitcoin’s current behavior reflects a lengthy monetization process for a new commodity.
Dalio, who revealed a small Bitcoin allocation in 2021, maintains that he views the holding as a long-duration option hedge. Still, he continues to prefer gold and has cited the theoretical threat of quantum computing as a long-term risk for Bitcoin. While his critique challenges the digital gold narrative, supporters contend that Bitcoin’s role may evolve with greater adoption and regulatory clarity.
