Ray Dalio, billionaire investor and founder of Bridgewater Associates, says Bitcoin still faces fundamental barriers that prevent it from evolving into a global reserve currency—despite the fact that he personally owns a small allocation.
Dalio, who has previously revealed that he holds bitcoin BTC $87,165.80, clarified that the cryptocurrency has represented about 1% of his portfolio for years. “I have a small percentage of bitcoin,” he told CNBC. “I’ve had it forever—around 1% of my portfolio.”
Still, Dalio argued that bitcoin’s design presents major challenges for adoption by sovereign governments. He highlighted its traceable transaction history, the full transparency of its blockchain, and the long-term risks posed by rapid advances in quantum computing.
“The problem with bitcoin is it’s not going to become a reserve currency for major countries,” Dalio said. “It can be tracked, and with quantum computing, it could theoretically be controlled or hacked.” He added that governments are unlikely to embrace a monetary system that stores all financial movements on a public, permanent ledger.
Dalio has recently suggested that investors consider allocating roughly 15% of their portfolios to bitcoin and gold, though he reiterated that he personally leans toward gold. “The advantage of gold is you can hold it yourself, and you’re not dependent on someone else to create it,” he said.
Looking at the broader economy, Dalio warned that the U.S. is approaching the late stages of a major financial bubble. According to his long-standing bubble indicator—which tracks data back to 1900 and incorporates factors like leverage, liquidity, and wealth concentration—the market resembles the conditions that preceded the 1929 crash and the dot-com bust.
“The picture is quite clear—we’re in bubble territory,” Dalio said.
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