Billionaire Ray Dalio Reveals Bitcoin Allocation, Says BTC Not Ready For Reserve Role

Billionaire Ray Dalio reaffirmed his cautious stance on Bitcoin while confirming that he still holds about 1% of his portfolio in the asset. He said the position has remained unchanged for many years and continues to represent a small, steady portion of his broader strategy. 

Ray Dalio Reveals Bitcoin Accounts For 1% Of His Portfolio

During a CNBC interview, the hedge fund billionaire revealed that he still has about 1% of his portfolio in Bitcoin. However, he raised some issues with the flagship crypto, which he believes will hinder its adoption as a reserve currency.

Ray Dalio has previously said that his Bitcoin investment was never a big part of his overall investment strategy. He regards the allocation as a small, long-term holding, not a core position in his portfolio. Dalio said he does not intend to increase the stake.

His comments come amid heightened market sensitivity. Traders monitored Bitcoin’s rapid reaction to economic signals and evaluated how the asset performs under stress. Analysts also assessed whether the recent crypto market volatility revealed deeper weaknesses in the digital asset landscape.

Meanwhile, Dalio suggested that Bitcoin has structural problems limiting its scope as a global reserve asset. He pointed to transactional transparency as a major limitation, and suggested that significant governments will not adopt systems that record activity in a public and permanent manner. This makes it unsuited as a base for international monetary reserves, he added.

Dalio Flags Quantum Threats to BTC’s Stability

Dalio also worried about longer-term security risks. He attributed these risks to the progress of computing technologies, potentially undermining Bitcoin’s defense mechanism. He cited quantum computing as one such future development that could expose weaknesses in the system.

These developments, he said, cast doubt on Bitcoin’s status as a reserve currency for dominant economies. He explained that countries assume systems will remain secure, contained, and resilient as technology changes. He said Bitcoin’s current structure does not meet those requirements.

In the past, Dalio has said Bitcoin is a digital gold alternative. He maintains that BTC’s long-term prospects are colored by geopolitical pressure, regulatory uncertainty, and technical risks. These forces are also significant in how global markets value the asset, he said.

Binance founder Changpeng “CZ” Zhao responded to Dalio’s comments. He said he might have had a small impact on Dalio’s choice to retain some Bitcoin. “I learned more from him in exchange, of course,” CZ added.