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Ray Dalio said Bitcoin lacks privacy and its transparency is why central banks will not hold it.<\/p>\n
\n Summary<\/span>\n <\/p>\n <\/p>\n Bridgewater Associates founder Ray Dalio posted on X on May 11 that Bitcoin\u2019s public ledger is the core reason central banks are unlikely to adopt it as a reserve asset. \u201cBitcoin lacks privacy,\u201d Dalio said<\/a>. \u201cTransactions can be monitored and potentially controlled, which is why central banks aren\u2019t looking to hold it.\u201d<\/p>\n Dalio, who allocates roughly 1% of his own portfolio to bitcoin, framed the post as an extension of comments he first made on the All-In Podcast in March. He identified three structural weaknesses: lack of privacy, high correlation with technology stocks, and a market size still far smaller than gold\u2019s.<\/p>\n \u201cUltimately, gold is more widely held, deeply established, and still plays a central role in the global system,\u201d Dalio wrote<\/a>. He pointed to Bitcoin\u2019s tendency to trade in line with Nasdaq-listed tech stocks, arguing that this reduces its appeal as an independent hedge when investors face pressure elsewhere in their portfolios.<\/p>\n <\/p>\n Dalio\u2019s comments arrived as Bitcoin\u2019s correlation with the Nasdaq Composite climbed from 0.16 to 0.85 since the Iran war began, per data from TradingView. He also raised the possibility of future quantum computing threats to Bitcoin\u2019s cryptographic security, a concern security experts say affects the entire financial system rather than Bitcoin alone.<\/p>\n The broader debate<\/a> around Bitcoin and central bank reserves has intensified since the US government formally established a strategic Bitcoin reserve in 2025 and several other sovereign wealth vehicles began accumulating BTC, though at volumes still small compared with gold holdings globally.<\/p>\n Strategy executive chairman Michael Saylor responded directly, calling Bitcoin\u2019s transparency a feature rather than a flaw. \u201cIt is precisely what makes Bitcoin usable as global collateral,\u201d he said, arguing that a verifiable, auditable asset that any party can confirm without trusting a third party is structurally superior for institutional use.<\/p>\n Bitwise CIO Matt Hougan offered a more nuanced counter<\/a>, conceding that Dalio\u2019s concerns are real but arguing they represent an investment opportunity rather than a permanent barrier. \u201cThese criticisms are quite literally the opportunity,\u201d Hougan said. \u201cIf these critiques did not exist, bitcoin would already be at $1 million a coin.\u201d<\/p>\n <\/p><\/div>\n\n\n
Why Dalio favours gold over bitcoin<\/h2>\n
Saylor and Bitwise push back<\/h3>\n