Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Prominent American investor Ray Dalio is sharpening his long-held skepticism regarding Bitcoin‘s role in the global financial system, arguing that despite its scarcity and appeal as money, it remains ill-suited for central bank balance sheets.
In a recent interview with entrepreneur Nikhil Kamath, Dalio framed Bitcoin as money in spirit but drew a clear distinction regarding who he expects to treat it as a reserve-grade asset.
“Bitcoin is limited in supply and its perception of money. It is a form of money,” he said, while outlining a set of hurdles that he believes keep central banks at arm’s length.
Dalio noted that Bitcoin’s transparency creates a vulnerability that reserve managers struggle to accept, as public transactions can be traced and potentially interrupted. He argued that this characteristic differentiates Bitcoin from gold, which he described as harder for authorities to control once held outside the traditional financial system.
NEW: RAY DALIO SAYS THAT BITCOIN IS “UNLIKELY TO BE HELD SIGNIFICANTLY BY CENTRAL BANKS” – TRANSACTIONS ARE TOO TRANSPARENT, THE GOVERNMENT CAN INTERFERE WITH THEM
pic.twitter.com/NzxrhBzp4m— DEGEN NEWS (@DegenerateNews) December 20, 2025
Why Gold Still Tops Dalio’s Hard Asset Playbook
Related Posts
He extended this point with a security perspective, raising the risk that Bitcoin could be cracked, broken, or controlled. He warned that these scenarios significantly influence how he weighs the asset as a long-term store of wealth.
Last year, Dalio encouraged investors to favor gold and Bitcoin while avoiding debt assets, as major economies grapple with rising levels of indebtedness. Although he has long shown a preference for both Bitcoin and gold, he has made it clear that if forced to choose, he would opt for gold.
Dalio reiterated that he maintains some exposure to Bitcoin but ranks it behind gold in his 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 outlined regarding traceability and interference risk.
Why Dalio Prefers Scarce Assets Over Fiat-Linked Tokens
He also expressed a dim view of stablecoins as a wealth-holding tool, noting that 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, describing their primary role as transactional plumbing rather than a long-term reserve asset.
For Dalio, stablecoins fit best where speed and convenience are paramount. “It’s used largely for immediate, quick transactions,” he said, while stopping short of classifying them as a store of wealth.
These comments arrive as crypto markets continue to court mainstream legitimacy, with spot Bitcoin ETFs and institutional custody pushing digital assets deeper into traditional portfolios.
Even so, Dalio’s message to crypto-native investors remains simple: he sees Bitcoin as a form of money with scarcity value, but views gold as the cleaner hedge when the goal is insulation from state control.
