Billionaire investor Ray Dalio says Bitcoin still cannot serve as a reserve currency for major countries, despite growing global interest in digital assets.
Speaking in a CNBC interview, Dalio revealed that he holds a small amount of Bitcoin, around 1% of his portfolio. However, he argued that Bitcoin’s design prevents it from becoming the foundation of national reserves.
Bitcoin is Trackable
Specifically, Dalio stated that Bitcoin can be tracked and may one day be vulnerable to quantum computing, which could allow governments or hackers to take control of it. According to him, these weaknesses make BTC unsuitable for the level of independence and resilience required of reserve assets.
Meanwhile, he added that physical gold remains the strongest non-fiat alternative because it does not depend on any digital network or issuer. In his view, that makes gold more reliable than Bitcoin in a world facing rising debt risks and political instability.
Interestingly, other world leaders, like ECB President Christine Lagarde, have used the argument of volatility to question Bitcoin’s suitability as a national reserve. However, despite these concerns, countries like the United States are moving forward with efforts to establish BTC as a national reserve.
Ray Dalio about Bitcoin:
"I have a small percentage of Bitcoin I've had forever, like 1% of my portfolio. I've said the same thing over and over again about Bitcoin. I think the problem of Bitcoin is it's not going to be a reserve currency for major countries because it can be… pic.twitter.com/UWgtxa06fR
— *Walter Bloomberg (@DeItaone) November 20, 2025
Why Dalio Is More Concerned About Government Debt Than Crypto
While Bitcoin’s role has grabbed attention, Dalio repeatedly stressed that the real crisis lies in global government debt. He warned that debt issuance is rising rapidly across major economies, creating a dangerous imbalance between supply and demand.
Dalio explained that “debt is money and money is debt,” so when governments create too much, its value drops. Over the next three years, he expects this problem to worsen as countries borrow more.
He noted that the issue extends beyond the United States. Countries like the UK and France are reaching limits where markets no longer want additional government debt. At the same time, raising taxes pushes people away, cutting spending is politically impossible, and deficits continue to grow.
Private Markets Add Another Layer of Risk
Dalio also highlighted growing risks in private markets, such as private equity and venture capital. Firms are finding it harder to sell deals, earn returns, or raise cash, and many private credit products are tied to these struggling markets. He called this a “risky dynamic,” especially when combined with leveraged products like ETFs that amplify volatility.
Dalio added that rising wealth gaps and weak economies are fueling political instability, with some countries cycling through multiple leaders in just a few years.
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