Ray Dalio Warns Bitcoin Cannot Replace Gold as a Crisis Asset

Billionaire investor Ray Dalio has reiterated that Bitcoin cannot replace gold as a reliable store of value. On the All-In podcast, the founder of Bridgewater Associates stated, “There is only one gold.” Dalio emphasized that gold remains the “most established money” and the second-largest reserve asset held by central banks worldwide. In contrast, Bitcoin lacks regulatory backing and government support.

Why Dalio Is Skeptical About Bitcoin

Dalio outlined several key reasons for his skepticism. First, he sees little incentive for central banks to hold Bitcoin long-term. Second, Bitcoin often moves in tandem with technology stocks, making it vulnerable to market stress as investors may be forced to liquidate other holdings.

Dalio also highlighted privacy concerns, noting that all Bitcoin transactions are traceable. Additionally, he pointed out the theoretical risk posed by quantum computing, which could challenge the network’s cryptographic security.

Bitcoin vs Gold in the Current Market

In July 2025, Dalio suggested allocating up to 15% of a portfolio to Bitcoin or gold to balance risk amid rising US debt and currency depreciation. However, the landscape has shifted. Bitcoin has fallen more than 45% from its October peak, trading around $71,220, while gold has gained over 30% to $5,120. This divergence underscores that gold behaves differently from cryptocurrency during geopolitical and economic turbulence.

The Changing Global Order

Dalio recently highlighted that the global order built around US dominance has “disintegrated.” He recommends focusing on real assets like gold during periods of currency weakness and debt system stress, while still acknowledging Bitcoin’s hard-money characteristics. However, he remains unconvinced that it can match gold’s reliability during crises.

Dalio’s views echo warnings from other prominent investors, yet history shows such cautionary signals often coincide with entry points for long-term Bitcoin holders. Interestingly, the quantum computing argument is not unique to Bitcoin; most modern financial systems, including gold trading platforms, share similar cryptographic vulnerabilities.