“There Is Only One Gold,” Billionaire Ray Dalio Says Amid BTC’s Quantum Threats

The billionaire and founder Ray Dalio has yet again said that Bitcoin cannot be compared with gold as it is not backed by central banks, it does not provide privacy, and it is also vulnerable to quantum computing. This comment especially comes as BTC outperformed the asset in the past day.

Ray Dalio Urges Investors to Rethink Bitcoin Comparison to Gold

The founder was quoted in a Podcast where he noted that investors should stop comparing Bitcoin with gold. While Dalio noted that he indeed holds on to BTC, the allocation is just 1% of his overall portfolio.

Ray Dalio noted that the biggest cryptocurrency does not have the backing of the central bank, does not have privacy, and is under threat in the long term from quantum computing.

The market movement at the time he made the comment didn’t align with what he said. The price of gold crashed to around $5,120, a 3% drop, whereas BTC dropped by merely 0.6% to $68,700. Five days into the U.S.-Iran conflict, the asset that Ray Dalio favors is getting battered harder by the kind of crisis that he believes it is supposed to protect against.

Bitcoin and gold have been moving in tandem since July. This was before the recent crypto market crash in October, which wiped out $20 billion. Since then, the assets have been moving in opposite directions. Bitcoin has lost over 45% from its high in October. Gold, on the other hand, has rallied 30% and is now at $5,100.

Quantum Computing Risks Limit BTC Growth

Ray Dalio was very particular about the coin’s lingering quantum computing risks. Just recently, Kevin O’Leary issued a warning about the risks that Bitcoin and the crypto world face. According to him, the rapid development of quantum computing poses major risks to Bitcoin.

Meanwhile, Strategy’s Michael Saylor stated that quantum computing poses no risk to Bitcoin at the moment and that the idea of it being a risk to Bitcoin is FUD. He also stated that the risk would be more than a decade away. He also attributed the price limit of Bitcoin to the fact that people have limited access to bank credit.

For instance, the major concern that Ray Dalio had with regard to Bitcoin was its privacy aspect, given that all transactions are recorded on the blockchain and are publicly accessible.

“Bitcoin does not have privacy. Any transaction can be monitored and directly, perhaps, controlled,” he said.