Ray Dalio warned that Bitcoin is unlikely to become a central bank reserve
Crypto Reporter
Shalini Nagarajan
Crypto Reporter
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Prominent American investor Ray Dalio is raising doubts about Bitcoin's role in the global system, arguing that despite its scarcity and appeal as a currency, it is not good enough to sit on central bank balance sheets.
In a recent interview with entrepreneur Nikhil Kamath, Dalio framed Bitcoin as a virtual currency, and then drew a clear line on who he expects to hold as reserve grade.
“Bitcoin is limited in terms of supply and currency. It's a form of money,” he said, describing the obstacles he believes will keep central banks at arm's length.
Dalio says Bitcoin's transparency creates vulnerabilities that reserve managers struggle to accept, as public transactions can be discovered and intercepted. This, he argued, is what separates bitcoin from gold.
Why Gold Upped Dalio's Hard Asset Playbook
He extended his point with a security angle, raising the risk that bitcoin could crack, break or take control, and warned of how these factors could weigh on the asset as a long-term asset.
Dalio last year encouraged investors to ditch debt assets in favor of gold and bitcoin, as major economies grappled with rising levels of debt. He has long shown a preference for both Bitcoin and gold, but made it clear that if forced to choose, he would choose gold.
Dalio reiterated that he expects some exposure, ranking behind gold in his own hard assets hierarchy. “I have a little Bitcoin,” he said, adding that he still finds it less attractive than gold for the same reasons he put around the risk of traceability and interference.
Why Dalio prefers small assets over fiat-linked tokens
He also sees stablecoins as a wealth preservation tool, as they track the currencies they are denominated in and typically do not pay interest. “Stablecoins are tied to fiat currencies,” Dalio said before explaining their primary role as a transaction pipeline rather than a long-term reserve.
For Dalio, issues of speed and convenience fit the stable coin better. “It's mostly used for quick transactions,” he said, without calling it a hoard of wealth.
The comments come as crypto markets continue to challenge mainstream legitimacy, with Bitcoin ETFs and institutional hedges pushing digital assets into traditional portfolios.
Still, Dalio's note remains simplistic for crypto-native investors, seeing Bitcoin as a cash-scarcity value, then gold as a pure hedge when the goal is protection from government regulation.
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