Ray Dalio Says Bitcoin Still Has Structural Issues Despite Holding 1% in BTC

Ray Dalio, one of the world’s most influential macro investors, has disclosed that he still has about 1% of his portfolio in Bitcoin.

Despite the limited exposure, he has raised concerns that he believes will hinder the token’s adoption as a reserve currency.

According to Dalio, Bitcoin has structural issues that prevent it from serving as a global reserve. He pointed out that its public transaction records make it unlikely that major governments would use it as an international monetary reserve.

Dalio’s comments came amid Bitcoin dropping below $90,000 following the U.S. government’s failure to release October’s employment data, adding to market uncertainty.

In response, traders are monitoring how quickly Bitcoin responds to economic news and stress, while analysts assess whether recent market fluctuations indicate larger problems in the crypto market.

Dalio Warns Future Computing Could Threaten Bitcoin Security

Speaking at a CNBC interview, Dalio warned that technology advancements, such as quantum computers, could weaken Bitcoin’s security system.

Supporting his remarks, blockchain analytics firm Chainalysis reported that very powerful quantum computers that could break Bitcoin’s security might appear in the next 10 to 15 years, placing the crypto industry on a clear path to prepare for this risk.

Dalio said these developments raise doubts about Bitcoin’s role as a reserve currency for major countries because governments expect systems to remain safe, stable, and resilient as technology evolves, but Bitcoin’s current structure doesn’t meet those standards.

Although he had previously called Bitcoin a digital gold alternative, he noted that its long-term outlook is affected by geopolitical tensions, unclear regulations, and technical risks, all of which influence how global markets value the assets.

Recently, Dalio advised investors to allocate 15% of their money into Bitcoin and gold, noting that gold is valuable because you can physically hold it and don’t have to rely on anyone else to provide it.