Bitcoin News Update: While Major Institutions Invest Heavily in Bitcoin, Dalio Remains Loyal to Gold and Maintains Doubts

Ray Dalio, the renowned billionaire investor and founder of Bridgewater Associates, has once again expressed his doubts about

, keeping only a minimal 1% of his portfolio in the cryptocurrency and insisting that it is unsuitable as a reserve currency for leading economies. In a recent interview with CNBC, Dalio pointed to Bitcoin’s traceability and its potential vulnerability to quantum computing as major drawbacks, explaining, "My concern with Bitcoin is that it's going to become a reserve currency for significant nations since it can be tracked and, in theory, could be controlled or hacked," . His comments, which echo his earlier criticisms, have reignited discussions about Bitcoin’s position in the global financial landscape, especially as the broader crypto market faces a downturn.

Dalio’s reservations stem from both technological and geopolitical concerns. He stressed that Bitcoin’s open ledger makes it ill-suited for the privacy typically required of reserve assets, and that advances in quantum computing could eventually compromise its cryptographic protections. "There is this possibility" of quantum-based attacks, he cautioned, . This perspective gained attention as Bitcoin’s value fell below $87,000 in late November 2025, over quantum threats and a $1.3 billion sell-off by early investor Owen Gunden.

The potential impact of quantum computing on Bitcoin remains a hotly debated issue among specialists. While Dalio foresees imminent risks, Bitcoin pioneer Adam Back maintains that quantum-resistant solutions are already being developed and that significant threats are still many years away. "Bitcoin can evolve over time... and be prepared for quantum threats well before quantum computers capable of breaking cryptography are available," Back responded

. At the same time, market analysts have challenged this narrative, pointing out that Bitcoin’s SHA-256 encryption is more secure than the RSA systems used by conventional banks .

Despite Dalio’s cautious approach, other major institutions are increasing their exposure to Bitcoin. MicroStrategy, for example, has grown its Bitcoin reserves to 640,808 coins,

, through aggressive fundraising and financial strategies. The company’s “42/42” initiative—doubling its original goal—stands in stark contrast to Dalio’s conservative outlook, illustrating the sharply divided opinions on Bitcoin’s role as both a value store and a strategic asset.

The ongoing debate about Bitcoin’s potential as a reserve currency is also tied to larger economic issues. Dalio has consistently warned about rising global debt and the instability of fiat currencies, yet he favors physical gold over digital alternatives. "Gold is independent of digital networks or issuers," he stated,

against political turmoil and inflation. This view stands in contrast to the increasing interest from governments, including the U.S., in adopting Bitcoin as a reserve asset, as seen in the recent Bitcoin for America Act, .

As the cryptocurrency sector faces ongoing volatility and regulatory challenges, Dalio’s skepticism highlights a deep divide over Bitcoin’s prospects. While concerns about quantum computing and structural weaknesses persist, Bitcoin’s resilience—demonstrated by its long-standing resistance to hacking—continues to draw both detractors and supporters. In the years ahead, the conversation around balancing innovation and security is likely to intensify, as investors and policymakers adapt to the rapidly changing world of digital finance.