Billionaire investor Ray Dalio keeps only 1% of his portfolio in Bitcoin (BTC) because he considers gold safer and worries about technological and government risks.
Key Points:
- Ray Dalio says Bitcoin represents a form of scarce money, but his allocation remains limited to 1% as he favors gold.
- He warned that quantum computing could threaten Bitcoin’s cryptographic security and that governments could monitor, tax or restrict the asset.
- Wall Street firms continue expanding Bitcoin access, creating a clear divide between Dalio’s caution and institutional adoption.
Dalio’s Bitcoin Allocation
Dalio, founder of Bridgewater Associates, disclosed the allocation during an episode of The Diary of a CEO, CoinCodex News reported on Jul. 31. He still views Bitcoin as money.
Unlike government-issued currencies, he said, Bitcoin cannot be printed, though he argued that technological vulnerabilities could undermine that scarcity advantage over time. “Bitcoin is a type of money that can’t be printed, but there are technologies that can hurt it,” Dalio said, citing quantum computing. “It can be monitored by governments ... and it could be taxed,” he added.
“When the governments say I don’t want it, they have the power ... to do whatever they want with it,” he said, arguing central banks would avoid significant holdings because they prefer private, controlled transactions.
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Bitcoin Gold Divide
“I prefer that,” Dalio said while pointing to gold bars, “rather than Bitcoin,” reinforcing his view that the metal carries fewer long-term risks. His position remains cautious, not absolute.
Wall Street’s expanding crypto products show that other major investors have reached a different conclusion about Bitcoin’s long-term role. Franklin Templeton filed for two proposed ETFs in June that would direct stock dividends into Bitcoin, extending institutional access beyond conventional spot products. Those funds are not yet approved.
BlackRock CEO Larry Fink has called Bitcoin an “international asset” and compared its development to “digitizing gold,” a view that contrasts with Dalio’s preference for the physical metal. The disagreement centers on trust.
Dalio once said he would not invest in crypto, but later disclosed a small Bitcoin holding and called the cryptocurrency “one hell of an invention,” while keeping his allocation near 1%.
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