Billionaire Ray Dalio Warns Bitcoin Is Unlikely To Become A Central Bank Reserve

Prominent American investor Ray Dalio is sharpening his long-held skepticism on Bitcoin’s role in the global system, arguing that despite its scarcity and appeal as money, it remains ill-suited to sit on central bank balance sheets.

In a recent interview with entrepreneur Nikhil Kamath, Dalio framed Bitcoin as money in spirit, then drew a clear line on who he expects to treat it as reserve grade.

“Bitcoin is limited in supply and its perception of money. It is a form of money,” he said, while describing a set of hurdles that he believes keep central banks at arm’s length.

Dalio said Bitcoin’s transparency creates a vulnerability that reserve managers struggle to accept, since public transactions can be traced and potentially interrupted. He also argued that this differentiates Bitcoin from gold, which he described as harder for authorities to control once held outside the traditional system.

Why Gold Still Tops Dalio’s Hard Asset Playbook

He extended the point with a security angle, raising the risk that Bitcoin could be cracked, broken, or controlled, and warning that these scenarios shape how he weighs the asset as a long-term store of wealth.

Dalio last year encouraged investors to favour gold and Bitcoin while avoiding debt assets, as major economies grapple with rising levels of indebtedness. He has long shown a preference for both Bitcoin and gold, but has also made clear that if forced to choose, he would opt for gold.

Dalio reiterated he keeps some exposure, while ranking it behind gold in his own hierarchy of hard assets. “I have a little bit of Bitcoin,” he said, adding that he still finds it less attractive than gold for the same reasons he laid out around traceability and interference risk.

Why Dalio Prefers Scarce Assets Over Fiat-Linked Tokens

He also took a dim view of stablecoins as a wealth-holding tool, since they track the fiat currencies they are pegged to and typically do not pay interest. “A stablecoin is attached to the fiat currency,” Dalio said, before describing their main role as transactional plumbing rather than a long-term reserve asset.

For Dalio, stablecoins fit best where speed and convenience matter. “It’s used largely for immediate, quick transactions,” he said, while stopping short of calling them a store of wealth.

The comments arrive as crypto markets keep courting mainstream legitimacy, with spot Bitcoin ETFs and institutional custody pushing digital assets deeper into traditional portfolios.

Even so, Dalio’s memo to crypto native investors stays simple, he sees Bitcoin as a form of money with scarcity value, then he sees gold as the cleaner hedge when the goal is insulation from state control.