Prominent American investor Ray Dalio is doubling down on his skepticism about Bitcoin’s place in the global financial system. While he acknowledges its scarcity and appeal as a form of money, he believes it’s unlikely to ever earn a spot on central bank balance sheets.
Speaking recently with entrepreneur Nikhil Kamath, Dalio described Bitcoin as “money in spirit,” but made it clear that central banks see it very differently from traditional reserve assets.
“Bitcoin is limited in supply and people perceive it as money,” Dalio said. “It is a form of money.”
Still, he outlined several reasons why he thinks central banks will continue to keep their distance.
One major concern, according to Dalio, is transparency. Because Bitcoin transactions are public and traceable, he believes reserve managers view them as vulnerable to monitoring or disruption. In contrast, Dalio argued that gold is harder for governments to control once it’s held outside the financial system.
He also raised security concerns, warning that Bitcoin could one day be cracked, broken, or brought under tighter control—risks that matter when assessing an asset meant to preserve wealth over decades.
Despite these concerns, Dalio hasn’t turned his back on crypto entirely. Last year, he encouraged investors to favor scarce assets like gold and Bitcoin while avoiding debt-based investments, as global debt levels continue to climb.
That said, if forced to choose between the two, Dalio remains firmly in gold’s corner.
“I have a little bit of Bitcoin,” he admitted, but said gold ranks higher in his personal hierarchy of hard assets, largely because it’s less traceable and harder for authorities to interfere with.
Dalio was even less enthusiastic about stablecoins. Since they’re tied to fiat currencies and typically don’t earn interest, he doesn’t see them as effective stores of value.
“A stablecoin is attached to the fiat currency,” he explained, describing them as useful tools for fast, efficient transactions rather than long-term wealth preservation.
His comments come as crypto continues pushing toward mainstream acceptance, with Bitcoin ETFs and institutional custody bringing digital assets closer to traditional finance.
Still, Dalio’s message to crypto-focused investors is straightforward: while Bitcoin has scarcity and monetary qualities, gold remains the cleaner hedge when the goal is protection from government control.
