Billionaire Ray Dalio Speaks Bearish About Bitcoin Again: “It’s Becoming an Asset Sold Off First Rather Than a Safe Haven”

Renowned billionaire and founder of Bridgewater Associates, Ray Dalio, made striking statements about the global debt crisis, the future of the US economy, and the search for “safe havens” in his latest program appearance. Dalio discussed why Bitcoin has lagged behind gold during this period of continued growth and evaluated the obstacles facing digital assets.

Dalio stated that the US budget deficit, reaching 6% of GDP, and its massive debt burden have reached an unsustainable point. Recalling that debt cycles have historically always resulted in money printing, the renowned investor argued that investors and central banks are fleeing “fiat money” and turning to asset-backed assets.

As gold prices climbed to record levels, Dalio made some observations regarding Bitcoin’s failure to create the expected “safe haven” effect. Dalio stated that the traceability of Bitcoin transactions is the biggest obstacle to central banks adopting this asset as a reserve tool. He noted that central banks have historically turned to gold with confidence, but Bitcoin has not yet achieved this level of institutional and governmental acceptance.

Dalio, noting Bitcoin’s high correlation with technology stocks, argued that in times of liquidity squeeze in the market, Bitcoin acts more like a risky asset to be held in reserve than a “safe haven.”

He added that the Bitcoin market is still very small compared to gold and is more susceptible to manipulation/control.

Dalio argued that investors should hold 5% to 15% of their portfolios in “solid assets” like gold, stating that he acts more like a practical “mechanic” rather than an ideological approach. For cryptocurrencies, however, he raised questions about how technological advancements (such as AI and quantum computing) could affect the future security of the asset.

According to Dalio, the world is in the 5th phase of a major debt cycle; that is, at the peak of internal conflicts and geopolitical risks. Dalio states that this process will redefine the question of “what is money?”, signaling that while states may resist assets they cannot control, printing money (inflation) will become inevitable to escape the debt spiral.

*This is not investment advice.