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Ray Dalio Says Bitcoin Won’t Be a Reserve Currency, Keeps About 1% Allocation

He argues a public ledger plus possible quantum vulnerabilities make it unsuitable for central banks.

Overview

  • In a CNBC interview on Nov. 20, the Bridgewater founder said he has held roughly 1% of his portfolio in bitcoin for years.
  • He said governments are unlikely to adopt an asset whose transactions are publicly traceable and permanently recorded.
  • He warned that future advances in quantum computing could conceivably compromise Bitcoin’s cryptographic security.
  • Dalio reiterated a preference for physical gold as a reserve hedge because it can be held without reliance on a digital network or issuer.
  • His remarks follow central bank experiments with digital assets, including a Czech National Bank test portfolio, and come as bitcoin trades below October’s highs.