Ray Dalio Warns Bitcoin Unlikely to Be Long-Term Store of Value

Billionaire Ray Dalio says Bitcoin is not a reliable long-term store of value, citing privacy, quantum, and central bank risks.

Billionaire investor Ray Dalio said Bitcoin is unlikely to serve as a long-term store of value or safe-haven asset. He contested that cryptocurrency is not supported by any central bank and that it has privacy and technology risks. Dalio made these comments as global markets responded to geopolitical tensions between the U.S. and Iran.

Dalio Highlights Risks Facing Bitcoin as a Hedge

In the popular All-In Podcast, Dalio reiterated the point that gold is the best-established money and is held by a lot of central banks. He said Bitcoin does not have the same institutional demand and cannot have the same stability as gold. He warned that the public ledger made by Bitcoin opens transactions to monitoring. This decreases privacy and may give an option to the authorities to control its use.

Additionally, Dalio raised potential future threats from quantum computing. He noted that the development of technology may compromise the cryptographic security of Bitcoin. Therefore, he views Bitcoin as a speculative asset instead of a reliable hedge. He also found that Bitcoin displays a high correlation to tech stocks. This correlation may negatively impact its ability to act as a diversification tool during market stress.

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Meanwhile, the timing of Dalio’s comments was interesting. On the same date, gold dropped to $5,028 per ounce, down 3.3%, while Bitcoin gained around 5% to $71,500. This movement was in contrast with his view of gold as a crisis hedge. It also proves that Bitcoin and gold don’t always go hand in hand during market or geopolitical events.

Market Performance Shows Divergence Between Gold and Bitcoin

Bitcoin and gold had moved together between July and early October of 2025. However, the more general crypto crash in October destroyed $20 billion of leveraged positions. Since that crash, Bitcoin and gold have separated. Bitcoin dropped more than 45% from its October high, and gold shot up some 30% to over $5,100 an ounce.

Currently, gold is trading around $5,160 /oz, a more than 10% increase in the past month. Bitcoin is trading at about $68,700 still far below the October price high. Dalio stressed that gold is still a better hedge against global debt and economic instability. In contrast, he considers Bitcoin to be more volatile and speculative.

In spite of his criticisms, Dalio has a small allocation of Bitcoin in his personal portfolio. He said he holds around 1% of his assets in Bitcoin for diversification purposes. He suggests a higher allocation to gold, which he suggests of 5 to 15% of portfolios as a hedge against national debt and disorder globally.

Dalio’s warnings are consistent with concerns about Bitcoin’s long-term reliability as a safe-haven asset. Investors should look for its volatility, technological risks, and regulatory exposure. Meanwhile, gold remains a traditional hedge and central bank reserve asset. Dalio’s advice is to be wary of the investor looking for stability in uncertain markets.

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