Bitcoin News Update: While Major Institutions Invest Heavily in Bitcoin, Dalio Remains Loyal to Gold and Maintains Doubts

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Bitget-RWA2025/11/20 21:10

By:Bitget-RWA

- Ray Dalio reaffirms skepticism toward Bitcoin , citing trackability and quantum computing risks as barriers to its adoption as a reserve currency. - Experts debate quantum threats, with Bitcoin pioneer Adam Back arguing quantum-safe solutions will emerge before significant risks materialize. - Institutional investors like MicroStrategy continue expanding Bitcoin holdings to $70B, contrasting Dalio's preference for gold as a hedge against instability. - U.S. policy shifts, including the Bitcoin for Americ

Ray Dalio, the renowned billionaire investor and founder of Bridgewater Associates, has once again expressed his doubts about

Bitcoin

, keeping only a minimal 1% of his portfolio in the cryptocurrency and insisting that it is unsuitable as a reserve currency for leading economies. In a recent interview with CNBC, Dalio pointed to Bitcoin’s traceability and its potential vulnerability to quantum computing as major drawbacks, explaining, "My concern with Bitcoin is that it's

not

going to become a reserve currency for significant nations since it can be tracked and, in theory, could be controlled or hacked,"

according to a report

. His comments, which echo his earlier criticisms, have reignited discussions about Bitcoin’s position in the global financial landscape, especially as the broader crypto market faces a downturn.

Bitcoin News Update: While Major Institutions Invest Heavily in Bitcoin, Dalio Remains Loyal to Gold and Maintains Doubts image 0

Dalio’s reservations stem from both technological and geopolitical concerns. He stressed that Bitcoin’s open ledger makes it ill-suited for the privacy typically required of reserve assets, and that advances in quantum computing could eventually compromise its cryptographic protections. "There is this possibility" of quantum-based attacks, he cautioned,

referring to future computing power

. This perspective gained attention as Bitcoin’s value fell below $87,000 in late November 2025,

partly driven by retail panic

over quantum threats and a $1.3 billion sell-off by early investor Owen Gunden.

The potential impact of quantum computing on Bitcoin remains a hotly debated issue among specialists. While Dalio foresees imminent risks, Bitcoin pioneer Adam Back maintains that quantum-resistant solutions are already being developed and that significant threats are still many years away. "Bitcoin can evolve over time... and be prepared for quantum threats well before quantum computers capable of breaking cryptography are available," Back responded

according to a report

. At the same time, market analysts have challenged this narrative, pointing out that Bitcoin’s SHA-256 encryption is more secure than the RSA systems used by conventional banks

according to analysis

Despite Dalio’s cautious approach, other major institutions are increasing their exposure to Bitcoin. MicroStrategy, for example, has grown its Bitcoin reserves to 640,808 coins,

valued at approximately $70 billion

, through aggressive fundraising and financial strategies. The company’s “42/42” initiative—doubling its original goal—stands in stark contrast to Dalio’s conservative outlook, illustrating the sharply divided opinions on Bitcoin’s role as both a value store and a strategic asset.

The ongoing debate about Bitcoin’s potential as a reserve currency is also tied to larger economic issues. Dalio has consistently warned about rising global debt and the instability of fiat currencies, yet he favors physical gold over digital alternatives. "Gold is independent of digital networks or issuers," he stated,

presenting it as a more dependable safeguard

against political turmoil and inflation. This view stands in contrast to the increasing interest from governments, including the U.S., in adopting Bitcoin as a reserve asset, as seen in the recent Bitcoin for America Act,

which allows tax payments in Bitcoin

As the cryptocurrency sector faces ongoing volatility and regulatory challenges, Dalio’s skepticism highlights a deep divide over Bitcoin’s prospects. While concerns about quantum computing and structural weaknesses persist, Bitcoin’s resilience—demonstrated by its long-standing resistance to hacking—continues to draw both detractors and supporters. In the years ahead, the conversation around balancing innovation and security is likely to intensify, as investors and policymakers adapt to the rapidly changing world of digital finance.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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- Ray Dalio maintains a 1% Bitcoin allocation but doubts its viability as a global reserve asset due to traceability and quantum computing risks. - He favors gold over Bitcoin for its physical tangibility and resistance to digital vulnerabilities, while advising up to 15% portfolio exposure to "hard currencies." - Quantum threats and recent market corrections (32% drop from October 2025 highs) highlight Bitcoin's instability, with institutional ownership rising to 28% amid ETF adoption. - Dalio's cautious

Bitget-RWA•2025/11/21 01:56

Bitcoin News Update: Dalio Limits Bitcoin Holdings to 1% Due to Traceability and Quantum Threats

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