**Ray Dalio Maintains Bitcoin Skepticism, Holds Only 1% Allocation**
Billionaire investor Ray Dalio, the founder of Bridgewater Associates, has reiterated his cautious perspective on Bitcoin, revealing that he maintains a mere 1% allocation of the cryptocurrency in his investment portfolio. In a recent appearance on CNBC’s Squawk Box, Dalio stated, “I have a small percentage of Bitcoin… I’ve had it forever, like 1% of my portfolios,” highlighting his limited exposure to the digital asset.
Dalio, recognized for his macroeconomic insights and critical views on Bitcoin, pointed out that the cryptocurrency faces significant structural challenges that impede its potential as a global reserve currency. He emphasized that Bitcoin’s transparency and traceability are major drawbacks, arguing that governments are unlikely to adopt a monetary system that is fully trackable. “It’s not going to be a reserve currency for major countries because it can be tracked,” he asserted.
**Potential Threats to Bitcoin’s Security**
In addition to regulatory challenges, Dalio raised concerns about long-term security risks associated with Bitcoin. He warned that advancements in computing, particularly quantum technology, could pose a threat to Bitcoin’s cryptographic security. “It could be conceivably, with quantum computing, controlled, hacked, and so on and so forth,” he cautioned. According to blockchain analytics firm Chainalysis, breakthroughs in quantum computing could jeopardize Bitcoin’s security within the next 10 to 15 years, underscoring the technical challenges the network may face.
Historically, Dalio has expressed skepticism regarding Bitcoin’s future. In 2021, he warned that if Bitcoin gained significant traction, governments might intervene, stating, “If it becomes really successful, they will kill it. And they have ways of killing it.” However, he has also acknowledged Bitcoin’s resilience, noting in subsequent interviews that it has “proven itself… it hasn’t been hacked, it’s stood the test of time.”
Bridgewater Associates’ recent filings with the SEC reveal a substantial U.S. equity portfolio valued at $25.53 billion, encompassing over 1,000 positions. While Dalio has previously likened Bitcoin to digital gold, he continues to advocate for traditional hedges like gold, which he describes as an asset “you can hold, and you’re not dependent on someone to provide it.”
Dalio’s remarks come at a time of market uncertainty, as Bitcoin recently dipped below $86,000 following delayed U.S. employment data and broader macroeconomic pressures. After reaching all-time highs in October, Bitcoin has since experienced a 32% decline, with its current price at $86,521, according to recent data.
**Conclusion**
Ray Dalio’s cautious stance on Bitcoin reflects ongoing concerns about its viability as a global reserve currency and the potential threats posed by technological advancements. As the cryptocurrency market continues to evolve, investors will be watching closely to see how these factors influence Bitcoin’s future.
**FAQ**
**Q: Why does Ray Dalio only hold 1% of Bitcoin in his portfolio?**
A: Ray Dalio maintains a 1% allocation to Bitcoin due to his skepticism about its potential as a global reserve currency and concerns over its transparency and security risks.
