Ray Dalio Reiterates Bitcoin Skepticism, Citing Traceability and Quantum Computing Threats
Billionaire investor Ray Dalio continues to hold about 1% of his portfolio in Bitcoin (BTC), but he reiterated his long-standing concerns about its limitations as a global reserve currency. In a recent interview, Dalio cited its traceability and vulnerability to quantum computing as significant challenges.
Key points from Dalio's recent comments on Bitcoin:
Small, long-term allocation: Dalio stated that his allocation to Bitcoin has been around 1% of his portfolio "forever". He views it as a diversifier and a risk-reducing asset.
Traceability and privacy: Dalio believes governments will not adopt Bitcoin as a reserve currency because its transactions are traceable. This transparency lacks the privacy central banks require.
Quantum computing threat: He warned that future quantum computers could potentially control, hack, or compromise Bitcoin's encryption. While some analysts dismiss this as a near-term risk, a blockchain analytics firm estimates it could be a threat within 10-15 years.
Comparison to gold: Dalio continues to express a preference for gold as a hedge against currency debasement, noting that it is a physical asset not dependent on a third party.
Macroeconomic backdrop: His comments come amidst broader warnings about unsustainable government debt levels and a potential market bubble in the U.S.
