Ray Dalio cast fresh doubt on Bitcoin’s claim to safe-haven status on Tuesday, arguing that the asset still falls short of gold on privacy, institutional suitability and market structure. In a March 3 appearance on the All-In podcast, the billionaire hedge fund founder said those weaknesses help explain why Bitcoin has not behaved like gold during the current macro cycle.
That last point goes to Dalio’s bigger criticism: Bitcoin may be treated as an alternative monetary asset in theory, but in practice it still trades like a risk asset. “If somebody gets squeezed in one thing, they sell something, whatever else they have,” he said, arguing that Bitcoin’s supply-demand dynamics are shaped by cross-portfolio stress in a way golds are not. He also called it “a relatively small market” and, for that reason, “a relatively controllable market.”
Ray Dalio SLAMS Bitcoin!!
“Bitcoin does not have privacy.” “Central banks are not gonna wanna buy Bitcoin.” “Quantum computing” “Who owns it?”
Bitcoin Community Reacts“Once Bitcoin achieves the same scale as gold (it will over time based on its significant comparative advantages over gold) central banks will be forced to own it for the same reason they own golf. Without ownership their national currency becomes vulnerable to a speculative attack from Bitcoin,” he added.
Abra CEO Bill Barhydt argued that Bitcoin’s volatility and smaller float are features of a younger monetary asset, not proof of failure, while also disputing the severity of Dalio’s quantum concerns.
Zcash founder Zooko Wilcox, meanwhile, responded with a one-line jab: “I’m looking forward to Ray Dalio finding out about Zcash.”
At press time, BTC traded at $69,660.
