Billionaire Ray Dalio Casts Skepticism on Bitcoin's Central Bank Suitability Billionaire investor Ray Dalio has voiced heightened caution regarding Bitcoin's potential as an official reserve asset for central banks, despite acknowledging its inherent scarcity. His recent remarks underscore fundamental differences between digital currencies and traditional store-of-value assets like gold, highlighting concerns about transparency and governmental intervention.
Dalio's Red Flags: Traceability and Interference
Dalio notes that while Bitcoin possesses "money-like qualities" due to its limited supply, its public transaction records present a significant vulnerability for large custodians like central banks. He argues that the transparent nature of the blockchain allows for transaction traceability and potential government interference or interruption, making it an unsuitable asset for institutions tasked with safeguarding national wealth. This contrasts sharply with gold, which he believes is far more difficult for authorities to control once it moves outside the formal financial system. He also raised security concerns, suggesting Bitcoin could be "cracked, broken, or controlled," impacting its long-term viability as a secure store of value.
Stablecoins: Transactional Utility vs. Wealth Preservation
Expanding on his crypto assessment, Dalio assigned a low rating to stablecoins for long-term holding. He reasons that stablecoins, typically pegged to fiat currencies and offering no interest, are primarily useful for rapid transfers rather than wealth preservation. While personally maintaining "a little bit" of Bitcoin exposure, Dalio still prioritizes gold when the objective is shielding assets from state actions.
Market Dynamics and Future Projections
The cryptocurrency market is increasingly integrating with mainstream finance, evidenced by the emergence of spot Bitcoin ETFs and improved custody solutions. However, overlapping macroeconomic and market risks continue to make Bitcoin's near-term price trajectory, particularly for 2026, unusually difficult to forecast, according to Galaxy Research. Despite this short-term uncertainty, Galaxy's analysis suggests Bitcoin is behaving more like a macro asset than a speculative gamble, with options markets currently pricing an equal likelihood of Bitcoin reaching $70,000 or $130,000 by June 2026. Looking further out, Galaxy Research maintains a long-term bullish outlook, projecting Bitcoin could soar to $250,000 by the end of 2027.
