Billionaire investor Ray Dalio warned that Bitcoin is not a long-term safe-haven asset, arguing that gold remains the dominant store of value.
‘There is only one gold’
Speaking on the All-In Podcast on Tuesday, Dalio dismissed the idea of Bitcoin as “digital gold.”
Dalio said:
“There is only one gold.”
He argued that gold is “the most established money” and described it as the second-largest reserve asset held by central banks.
Dalio added he doesn’t see why central banks would want to buy Bitcoin and hold it over the long term.
Correlation and forced selling
Dalio reiterated that Bitcoin has “hard money characteristics,” but said it has shown a “pretty high correlation with tech stocks.”
He said:
“So, from an ownership perspective, supply and demand can be affected if somebody gets squeezed in one area and has to sell something else they hold.”
Privacy and quantum concerns
Dalio also raised concerns about Bitcoin’s privacy, saying:
Any transaction can be monitored.
He warned that quantum computing could threaten the network.
Recent price divergence
Dalio previously recommended a 15% portfolio allocation into Bitcoin or gold to optimize for the “best return-to-risk ratio,” citing America’s debt problem and currency debasement.
Between July and early October, both assets rose before a broader crypto market crash wiped out nearly $20 billion in leveraged positions.
The pair then decoupled in early October, with bitcoin falling over 45% from its October peak to $68,420, while gold climbed over 30% to $5,120.
Dalio also warned last month that the US-led “World Order” had “broken down,” urging investors to rethink how they protect their wealth.
He reinforced his view that stores of value, particularly gold, are best suited to preserve wealth when currencies weaken and credit systems come under stress.
