Bridgewaters’ Ray Dalio Says Bitcoin Is Alternative Money That Deserves Attention

Bridgewater Associates founder Ray Dalio has shared fresh thoughts on the role of Bitcoin in global finance, describing the asset as a promising alternative form of money.

Speaking in a recent interview, Dalio noted that money must serve two key functions: a medium of exchange and a store of wealth. He highlighted the latter as being the most essential characteristic of money. 

Dalio Skeptical About Bitcoin Being a Central Bank Reserve Currency 

While Bitcoin possesses characteristics of both, such as limited supply and ease of global transactions, he expressed doubts about its ability to achieve the status of a reserve currency.

“I doubt that any central bank will accept it as a reserve currency,” Dalio explained, pointing to the transparency of Bitcoin transactions. 

He argued that Bitcoin’s transparent ledger allows governments to monitor user activity, thereby undermining the sense of privacy associated with the leading cryptocurrency. He also highlighted concerns that the asset’s code could be compromised or weakened, a risk that further limits its chances of being adopted as a reserve currency.

Bitcoin Still Perceived as Alternative Money 

Despite these concerns, Dalio acknowledged the pioneering cryptocurrency’s growing perception as an “alternative money,” particularly among investors seeking diversification. 

“I can’t say exactly how effective Bitcoin is as money, but it’s being perceived by many as an alternative money and so is worth paying attention to,” he wrote in a post on X while reinforcing his position. 

The founder of Bridgewater Associates revealed that while he personally holds some BTC, it remains a relatively small portion of his portfolio compared to gold.

Dalio Advocates for Gold and BTC 

Meanwhile, Dalio has increasingly positioned Bitcoin alongside gold as a viable hedge against economic uncertainty. His advocacy comes at a time when the U.S. national debt has surged past $37 trillion, a development he argues is eroding the long-term appeal of the dollar.

In September, Dalio warned that the swelling debt burden is driving investors to seek alternative stores of wealth. According to him, assets like Bitcoin and gold provide a safeguard against the risks of dollar debasement and inflationary pressures. 

Earlier in the year, he encouraged investors to allocate up to 15% of their portfolios to Bitcoin and gold as part of a diversified strategy.