Ray Dalio, one of America's most influential billionaires, has reignited controversy by targeting Bitcoin, angering several key figures in the industry.
This legendary hedge fund manager believes that Bitcoin cannot serve as a reliable store of value.
Lawsuit concerning Bitcoin
Dalio stated that, first, Bitcoin cannot serve as a store of value due to its lack of privacy.
He noted that transactions made by mainstream cryptocurrency users are easily monitored and potentially controlled. As he mentioned earlier, this makes Bitcoin an unattractive reserve asset for central banks.
The billionaire also addressed another frequently cited criticism of Bitcoin—the persistent correlation between this cryptocurrency and technology stocks. Investors often sell cryptocurrencies to cover losses in other assets within their portfolios.
On the other hand, gold is an asset with extremely high holdings and broad market presence, remaining central to the global financial system.
Third, this is a relatively small and controllable market, while gold is unique. There is only one gold. Ultimately, gold has broader ownership, a more stable position, and still plays a central role in the global system,” he said.
This is a feature, not a bug.
Industry leaders quickly stepped forward to defend Bitcoin. The founder of MicroStrategy countered criticisms regarding Bitcoin's privacy, arguing that Bitcoin's transparency is "a feature, not a flaw," making it eligible as global collateral.
This controversial Bitcoin evangelist stated that Bitcoin has consistently outperformed gold while maintaining a higher Sharpe ratio.
Bitcoin financial services company River also highlighted Bitcoin's utility, noting that it can serve as a store of value hedge against central bank inflation, whereas traditional gold is nearly impossible to use for everyday or cross-border payments.
Analyst David Launhardt believes that Bitcoin's current market behavior merely indicates that a new asset is undergoing a prolonged monetization process.
Dalio's Moderate Allocation
According to U.Today, Dalio once held skepticism toward Bitcoin, but during the strong bull run of Bitcoin in 2021, he announced an increase in his Bitcoin holdings. This move was seen as a significant vote of confidence in Bitcoin, though the billionaire did not become a superfan overnight.
Dalio views this small investment as a "long-term option," a hedge against macroeconomic instability.
In August 2025, Dalio continued to recommend a small allocation to cryptocurrencies, but he favored gold.
Previously, he also cited the theoretical threat of quantum computing to explain his hesitation to accept Bitcoin.