Ray Dalio, the founder of Bridgewater Associates, has publicly stated that Bitcoin is unlikely to become a reserve asset for central banks due to its lack of privacy. In a post on X on May 11, he explained that the transparency of Bitcoin’s blockchain allows transactions to be tracked and potentially controlled by governments, which discourages central banks from adopting it. Despite holding about one percent of his personal portfolio in Bitcoin, Dalio identified three key drawbacks: insufficient privacy, a strong correlation with technology stocks, and a market cap that remains far smaller than gold’s.
Dalio reiterated his preference for gold, emphasizing that it is more widely held, deeply entrenched in the global financial system, and continues to serve a central role. He pointed out that Bitcoin’s tendency to move in tandem with Nasdaq-listed tech stocks undermines its value as an independent hedge during market stress. Additionally, he raised the issue of potential quantum computing threats to Bitcoin’s cryptographic security, although experts note that this concern applies broadly across the financial sector, not just to cryptocurrencies.
Michael Saylor, executive chairman of Strategy, directly countered Dalio’s arguments, asserting that Bitcoin’s transparency is actually a strength. He said it makes Bitcoin suitable as global digital collateral because it is verifiable and auditable without relying on a trusted third party. Bitwise CIO Matt Hougan offered a pragmatic perspective, acknowledging the validity of Dalio’s concerns but viewing them as investment opportunities. He remarked that if these criticisms did not exist, Bitcoin would already be worth one million dollars per coin.
The discussion around Bitcoin’s role as a reserve asset has gained momentum since the U.S. government established a strategic Bitcoin reserve in 2025 and other sovereign funds began accumulating the cryptocurrency, albeit at levels still insignificant compared to global gold reserves.