Ray Dalio, billionaire investor and founder of Bridgewater Associates, has sounded caution on the world’s largest crypto token, Bitcoin, even as it remains part of his own portfolio. While Bitcoin is often labelled as “digital gold”, Ray Dalio doesn’t find it as attractive as real gold due to several reasons.
In a recent podcast with Zerodha co-founder Nikhil Kamath, Dalio said, “I have a little bit of Bitcoin, but for me, it’s not as attractive as gold.”
His comments come at a time when gold has been making new highs every day, soaring 70% in 2025 so far. Meanwhile, Bitcoin is down 6% on a year-to-date (YTD) basis. During the year, Bitcoin prices had topped $126,000 mark, but the trend has reversed with the crypto token now trading at around $87,700 mark.
What makes Ray Dalio cautious on Bitcoin?
Dalio remains wary of Bitcoin due to three major reasons: lack of acceptance by central banks, the possibility of interference and the ability to break and control it.
Dalio said that Bitcoin is limited in supply and is perceived as money or a a storehold of wealth. Yet, it is unlikely to be significantly held by central banks and many others because of a number of problems.
Highlighting the challenges, Dalio said that transactions in Bitcoin can be followed. “One can monitor what the transactions are. Governments can monitor what the transactions are, and governments can interfere with those transactions,” he told Kamath in his latest WTF podcast.
In contrast, Dalio highlighted that gold is the only asset that you can have that the government can’t mess with and control, you have got it. “That’s not true of Bitcoin.”
He also listed other issues with Bitcoin. He said that bitcoin can be cracked, broken, or controlled, and it has those risks. As part of portfolio construction, Dalio advocated allocating 5-15% to gold despite the massive surge in prices.
Meanwhile, commenting on stablecoins, Dalio said that since they are attached to the fiat currency, they go down as the fiat currency goes down. Earlier in the podcast, he said that he is bearish on fiat currencies. Furthermore, he added that stablecoin doesn’t give an interest rate and is used largely for immediate, quick transactions and not as a store of wealth.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
