Ray Dalio, the billionaire founder of Bridgewater Associates, says Bitcoin still has major obstacles to overcome before it can credibly function as a global reserve currency.
Dalio, who has previously disclosed holding bitcoin BTC $87,165.80, offered more specific details about his stake, noting that it has consistently represented about 1% of his portfolio. “I have a small percentage of bitcoin,” he told CNBC. “I’ve had it forever—around 1% of my portfolio.”
Even with his personal exposure, Dalio argued that bitcoin remains constrained by several structural weaknesses that limit its suitability as a reserve asset. He highlighted the cryptocurrency’s traceability, the transparency of on-chain transactions, and potential vulnerabilities related to quantum computing advancements as significant barriers.
“The problem with bitcoin is it’s not going to be a reserve currency for major countries,” Dalio said. “It can be tracked, and with quantum computing it could conceivably be controlled or hacked.” He added that governments are unlikely to adopt a monetary system that publicly and permanently records every transaction.
Dalio has recently suggested that investors consider allocating up to 15% of their portfolios to bitcoin and gold—though he continues to favor gold. “The advantage of gold is that it’s something you can physically hold, and you’re not dependent on someone to provide it,” he explained.
More broadly, Dalio warned that the U.S. economy is approaching bubble-like conditions. He estimates it is roughly 80% of the way toward a market bubble comparable to those preceding the 1929 crash and the 2000 dot-com collapse. His view is based on his long-running bubble indicator, which tracks market data back to 1900 and evaluates factors such as leverage, monetary expansion, and concentration of wealth.
“The picture is pretty clear—we’re operating in bubble territory,” Dalio said.
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