Billionaire investor Ray Dalio has questioned Bitcoin’s role as digital gold. During a podcast appearance, he argued that Bitcoin lacks the institutional support and historical recognition that makes gold a primary reserve asset for central banks. Dalio cited Bitcoin’s correlation with tech stocks and specific vulnerabilities as reasons it cannot effectively substitute for gold.
Billionaire investor Ray Dalio has dismissed the possibility of Bitcoin serving as a substitute for gold, stating “there is only one gold.” He explained that gold is the most historically recognized currency and a key reserve asset for central banks, while questioning why they would hold Bitcoin for decades.
Dalio acknowledged Bitcoin has some hard money traits but noted a key flaw in its strong connection to technology stocks. He argued this correlation undermines Bitcoin’s safe-haven appeal, as selling pressure in tech markets would likely depress its price.
Recent market data shows the two assets have decoupled significantly. After moving together from July to early October, Bitcoin has fallen over 45% to approximately $68,420 since its peak.
Conversely, gold has climbed more than 30% to around $5,120 in the same period. This divergence supports Dalio’s argument about their differing behaviors.
Dalio expressed additional concerns about Bitcoin’s structure, including a lack of complete transaction privacy. He also cited potential future threats from quantum computing to Bitcoin’s cryptography.
Despite his critique, Dalio has suggested investors allocate a portion of their portfolios to both bitcoin and gold. He views gold as the ultimate store of value during geopolitical conflict and credit instability, a status he does not extend to Bitcoin.
