In a significant statement for global investors, billionaire Ray Dalio, the founder of Bridgewater Associates, has expressed caution regarding Bitcoin, the world's largest cryptocurrency. Despite holding a small position himself, Dalio starkly prefers traditional gold over the digital asset, outlining several critical concerns during a recent conversation with Zerodha co-founder Nikhil Kamath.
Dalio's Stance: A "Little" Bitcoin, But Gold Reigns Supreme
During an appearance on Nikhil Kamath's podcast, Dalio made his position clear. "I have a little bit of Bitcoin, but for me, it's not as attractive as gold," he stated. This commentary arrives at a pivotal market moment. While physical gold has been scaling unprecedented peaks, surging by an impressive 70% in 2025 so far, Bitcoin has struggled, registering a 6% decline on a year-to-date (YTD) basis. The crypto token, which had soared past the $126,000 mark earlier in the year, has seen a reversal, currently trading near the $87,700 level.
The Three Pillars of Dalio's Bitcoin Caution
Dalio's wariness stems from three fundamental issues that, in his view, undermine Bitcoin's promise as a reliable store of value compared to gold.
First, he highlighted the lack of acceptance by central banks and major institutions. While acknowledging Bitcoin's limited supply and its perception as digital money, Dalio believes several inherent problems will prevent it from being held significantly by official entities.
Second, he pointed to the risk of government interference and surveillance. "One can monitor what the transactions are. Governments can monitor what the transactions are, and governments can interfere with those transactions," Dalio explained. This traceability, a feature often touted for transparency, is seen as a vulnerability by the investor.
Third, Dalio raised concerns about Bitcoin's technological security, suggesting it can be "cracked, broken, or controlled". These risks, he argues, are not present with physical gold. "Gold is the only asset that you can have that the government can't mess with and control... That's not true of Bitcoin," he asserted.
Portfolio Strategy and Views on Stablecoins
Despite gold's massive price surge, Dalio remains a strong advocate for holding the precious metal in a diversified portfolio. He recommends an allocation of 5% to 15% to gold as part of prudent portfolio construction.
Dalio also shared his perspective on stablecoins, the cryptocurrencies pegged to fiat currencies like the US dollar. He noted that since they are tied to fiat, stablecoins lose value as the underlying currency depreciates. Earlier in the discussion, he expressed a bearish outlook on fiat currencies in general. Furthermore, he added that stablecoins do not offer an interest rate and are primarily used for quick transactions rather than as a long-term store of wealth.
Dalio's insights provide a crucial reality check for the Indian investment community, which is increasingly engaging with digital assets. His analysis underscores the enduring appeal of gold in the face of technological innovation and geopolitical uncertainty, while carefully delineating the distinct risks associated with cryptocurrencies like Bitcoin.
