Ray Dalio criticized Bitcoin during a recent appearance on the All-In Podcast, arguing that investors should stop comparing it to gold.
The Bridgewater Associates founder said bitcoin lacks central bank backing, offers limited privacy and could face long-term risks from advances such as quantum computing.
However, the timing of his remarks drew attention. On the same day Dalio made those comments, gold, the asset he favors as a crisis hedge, fell $168, or about 3 percent, while bitcoin declined just 0.7 percent.
Several days into the U.S.-Iran conflict, gold was experiencing sharper losses than Bitcoin, complicating Dalio’s argument that it remains the superior store of value during geopolitical turmoil.
Bitcoin trading dampened while gold shines
The divergence between Bitcoin and gold is not a new development. From July through early October, the two assets largely moved in tandem, tracking similar macro trends.
That changed after October’s broader crypto market crash, which wiped out roughly $20 billion in leveraged positions and triggered a sharp bitcoin downturn.
Since then, their paths have split: Bitcoin has fallen more than 45 percent from its October peak, while gold has climbed about 30 percent, rising above $5,100.
This week’s geopolitical tensions added another twist. Gold initially jumped following the first military strikes but later gave up those gains as oil supply concerns took center stage.
Bitcoin also sold off, then rebounded before facing resistance near $70,000 and stabilizing in the mid-$67,000 range.
The swings suggest neither asset has behaved as a classic safe haven, though bitcoin has shown relatively milder volatility.
Dalio not completely bearish on Bitcoin
Ray Dalio has long voiced concerns about Bitcoin. He argues that because it runs on a public ledger, transactions are transparent and potentially traceable, raising questions about privacy and even government oversight.
He also doubts central banks would adopt an asset built on open blockchain infrastructure. Another concern is quantum computing, which he sees as a possible long-term threat to bitcoin’s cryptographic security.
Still, Dalio is not outright bearish. He holds about 1 percent of his portfolio in Bitcoin for diversification and previously suggested investors allocate up to 15 percent to either Bitcoin or gold, citing U.S. debt risks. After warning that the U.S.-led “World Order” is weakening, Dalio urged investors to rethink wealth protection, though markets are debating whether gold remains the only answer.