While crypto investors see the milestone as proof of resilience, veteran hedge fund manager Ray Dalio remains cautious, arguing that central banks are unlikely to ever adopt Bitcoin as part of their reserves.
Dalio’s skepticism resurfaced after he shared an older interview clip this week, warning that Bitcoin’s open ledger makes it unsuitable for governments that prioritize secrecy and control. He also pointed to potential technological vulnerabilities that, in his view, prevent it from becoming a reliable reserve asset.
That perspective hasn’t gone unchallenged. Analyst Adam Livingston fired back, insisting that Bitcoin’s transparency is precisely what makes it valuable. Unlike the opaque banking practices that fueled the 2008 crash, he said, blockchain offers full accountability. Livingston also argued that fears about Bitcoin’s cryptography are unfounded, stressing that the SHA-256 algorithm has withstood every attempt to crack it.
For Dalio, however, the case is more nuanced than outright rejection. He has previously praised Bitcoin’s scarcity and categorized it alongside gold and silver as a form of “hard money.” He even once suggested that a slice of a portfolio – up to 15% – could be allocated to Bitcoin. Still, he keeps his own exposure low, admitting his holdings remain modest despite his first purchase back in 2021.
His position reflects a broader divide between traditional finance and the crypto world. Dalio frames Bitcoin as “alternative money,” useful but limited, while many digital asset advocates see it as the foundation of a future financial system. Investors like Robert Kiyosaki, for example, echo Dalio’s view of Bitcoin as hard money but take it a step further, urging followers to stockpile BTC alongside gold and silver to brace for potential crises.
The disagreement underscores a key question for Bitcoin’s future: is it destined to remain a niche hedge and portfolio diversifier, or could it eventually break into the ranks of reserve assets? For now, the market is leaning toward optimism – with Bitcoin posting fresh gains and testing new psychological levels.
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